Logistics News ME - October 2015

A f g h A n i s t A n

From warzone to Special

Economic Zone

L o g i s t i c s L A n d s c A p e

Al Masah Capital’s white paper bodes well for

regional industry

V e r k s g L o b A L L o g i s t i c s

Upstart LSP working its

way up

ConneCting trade professionals with industry intelligenCe oCtober 2015

The New STar iN The LogiSTicS FirmameNT

aFricariSiNg

Logistics News ME | October 2015 | 3

ContentsStart8 | News ScanRoundup of Industry Re-gional and International News

14 | Afghanistan The US Chord Group strikes a chord with the Afghan economy

16 | Twintec Success hits the roof for UK’s flooring solutions provider

Features20 | Africa RisingThe Logistics Lion roars: The global indus-try’s newest frontier

26 | AgilityMakes much headway in Africa

28 | Freight Reach Services Reaching out to Africa

34 | Guest Commen-tary Dr Steyn Heckroodt reflects on the impor-tance of flexible supply chains in the current context

36 | MENA Logistics LandscapeNewly released Al Masah Capital research paper forecasts industry lead-ership role for MENA in the near future

40 | ImdaadBusiness on the upswing for top UAE Facilities Management services provider

44 | Eros’ e-com-merce entityEros Group debuts with e-commerce portal to attract online shoppers

20

40

62

46 | Materials Han-dling ME 2015Statistics point out to the exhibition’s 8th successful edition—rein-forcing its primacy

48 | Fuel Prices Impact Shashi Dash, Founder-CEO, Al Masah Capital, takes the heat off fluctuating fuel prices in the UAE

50 | Qatar Transport Forum Examining the country’s roadmap for enhanced logistics infrastructure

51 | Professional PerspectivesOur regular columnist Prakash ‘PK’ Menon on the seven attributes of successful entrepre-neurs

52 | Verks Global LogisticsFive-year old LSP moves swiftly along

54 | SICK SICK clocks healthy growth in the Middle East

56 | Al Massar Trans-port Solutions A new, innovative lease plan has industry look-ing at possibilities

57 | Transport Solutions Middle East 2016 Gains traction in run-up to 2016 transport debut show

60 | Soft TalkMeet a rarity in the logistics world: A lady Finance Director with an international LSP

62 | Etihad RailChugging away

6 | Logistics News ME | October 2015

By its very nature, logistics is an international business encompass-ing inter alia, local, national, inter and intra-regional and inter and intra-continental transportation. It is at the root and core of interna-tional trade and commerce and is the fulcrum on which global econ-omies move and revolve.

Logistics is thus not linear, straight-forward business but is fraught with numerous complexities, permutations and combina-tions of movement, multi-modal forms of transportation and gov-erned by rules, regulations, conventions, protocols, bi-lateral agreements and other governmental, trade, inspection and oversight bodies ad infinitum.

To this end, for this edition, Logistics News Mid-dle East, ventured outside of the region and onward to Africa, to assess the state of the industry on the continent. As more and more countries get demo-cratic and reformist, as the population gets more literate, as more infrastructural groundwork is laid, as more natural resources are harnessed and the middle and upper classes with considerable dispos-able incomes emerge, the logistics sector is clearly poised for a major take-off in Africa.

We spoke to a cross section of industry profes-sionals and practitioners in the UAE and an over-whelmingly large percentage of interviewees were optimistic about prospects and potential for the lo-gistics and supply chain industry in the emerging markets of Trans-Africa across a vast spectrum of industry, be it in the agriculture, horticulture, mining, energy, construction, infra-structural development, food, retail and transportation sectors.

However, despite the opportunities and possibilities the continent is also beset with the lack of will and-or resources on the part of many governments, abysmal lack of infrastructure in many parts of the continent, dictatorships, huge imbalances in standards of living between the haves and the have-nots, corrupt leaders, civil wars, en-demic unemployment and falling economies. Internecine conflicts, tribalism and ethnic warfare, snowballing religious extremism and violence and the list goes on. These pose very serious challenges and

Malcolm Dias Editor [email protected]

impediment to not only the growth of economies but also to the de-velopment and future of the logistics industry.

Happily, the overall verdict however—the growth of the logistics sector in post-colonial and independent Africa is here to stay. The GCC and wider Middle East countries are keen to seek their share of the trade pie as also are developed economies, but there is intense competition as the BRICS nations and countries across the globe also clamour and want their fair part in the rich pickings from the

emerging continent. Logistics is taking firm steps in Africa also boost-

ed by traditional oil-centric economies of Algeria, Libya, Nigeria and now neo oil and energy abun-dant emerging economies such as Angola, Mozam-bique, Gabon, Equatorial Guinea, Kenya and Tan-zania.

Surely, the Africa story takes a lion’s share of this edition but we have a fair mix of other interesting narratives and features of interest in the supply chain and logistics realm, which we hope you, our readers, will enjoy and find interesting and useful. Happy reading!

With this edition, we commemorate our first an-niversary, an important milestone for Logistics News Middle East. This has been an incredible journey fraught with a medley of emotions—mostly thrilling and sometimes challenging, but always ex-

citing and stimulating. You, our readers, have been the driving force behind our passion and energy.

As always, we’d love to hear from you. Send in your observations and comments to me at the email address below.

Editor’s NoteInter and Intra-ContInental logIstICs

Editor Malcolm Dias

[email protected]

Managing Director Walid Zok

[email protected]

Director Rabih Najm

[email protected]

Director Wissam Younane

[email protected]

Group Publishing DirectorDiarmuid O’Malley

[email protected]

Group Sales Manager Jayant Dey

[email protected]

Marketing Mark Anthony Monzon

[email protected]

Group EditorMelanie Mingas

[email protected]

Art DirectorAaron Sutton

[email protected]

c o n t r i b u t o r s

Mark Millar, Joy Thattil,Prakash PK Menon

s u b s c r i b e

[email protected] Box 502511 Dubai,

United Arab Emirates

P +971 4 4200 506 | F +971 4 4200 196

For all commercial enquiries related to Logistics News Middle East contact

[email protected] +971 50 1971200

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tions in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News

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Emirates SkyCargo has welcomed the arrival of its newest Boeing 777 Freighter aircraft, bringing the

total number of dedicated cargo aircraft in its fleet to 15, including two Boeing 747-400Fs and 13 Boeing 777Fs.

Its dedicated freighter fleet complements belly-hold capacity in an additional 224 Emirates passenger aircraft, offering flexibility and the capability to carry more cargo to more places around the globe. Combined, Emirates SkyCargo now serves customers in more than 147 destinations across six continents.

Emirates’ newest 777F, which left the Boeing Manufacturing Facility in

Emirates Skycargo acquires 15th freighter

Everett, Washington, in September, flew its first mission to Hong Kong. Since being introduced to the SkyCargo fleet in 2009, the airline’s 13 Boeing 777Fs have logged an impressive 30,250 flights totalling more than 175,000 hours.

“The Boeing 777F has an impressive range and payload capability, and is efficient to operate. The aircraft allows us to transport goods from remote destinations in the SkyCargo network such as Bangui (Central African Republic), Port Au Prince (Haiti) and Nadi (Fiji) to customers in major urban centres such as London, Amsterdam and New York City,” remarked Nabil Sultan, Emirates divisional senior vice president, Cargo.

Emirates, the world’s largest international air cargo carrier by freight tonne-kilometres flown, carries more than 45,000 tonnes of cargo per week on six continents.

Earlier this year, Emirates SkyCargo relocated its hub freighter operations to Al Maktoum International Airport, Dubai South, where it offers 50 scheduled freighter routes from its new cargo terminal. Its new state-of-the-art facility features an advanced storage system and cool-chain area, which can handle approximately 140,000 tonnes of perishable cargo per annum with temperatures of 18°C to 25°C.

In ThE nEWS

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DP World, together with joint-venture partners APL, HMM, MOL and CMA-CGM, has officially opened the Rotterdam World Gateway (RWG) terminal, providing the global supply chain with the most innovative and automated container terminal in the world.

DP World chair, HE Sultan Ahmed Bin Sulayem attended the grand opening ceremony as guest speaker along with the Mayor of Rotterdam, Ahmed Aboutaleb, RWG managing director Ronald Lugthart, RWG Board of Directors chair Rob van Dijk and Port of Rotterdam Authority CEO

Allard Castelein.Speaking on this occasion DP

World chair, HE Sultan Ahmed Bin Sulayem, stated: “Rotterdam World Gateway promises to provide an unrivalled level of automation and customer service and brings a new era of technology and modern efficiency in container terminal operations. The ease of connectivity between container vessels, barges, road and rail is a vision of how the future can look in our industry. With RWG, the future of container port operations promises to be cleaner, greener, safer, quicker, more inclusive and brighter.”

SI Mustafa, a board member of Almajdouie Holding, recently inaugurated Petrology of-fice in Bahrain.

Petrology is a joint venture between Saudi Arabia-based Almajdouie Logistics (KSA), De Rijke (The Netherlands) and Su-mitomo Warehouse (Japan). Its focus is to serve the growing logistics needs of the petrochemical industry by bridging the gap between demand and supply.

Mustafa asserted that all three partners have a proven expertise in executing and operating supply chain solutions within their territories. The three powerhouses are jointly aiming to break the cost curve to ensure competitive advantage for the petrochemical industry across the global value chain.

Petrology will serve customer needs with innovative and fast solutions on a global scale, capitalising on each of the three com-pany’s competencies from a geographical, cultural and technical perspective.

With this, Almajdouie Logistics receives further technical-know from abroad and in-creases its wide network of JVs and net-working partners.

DP WorlD oPens WorlD’s neWest container terminal

Petrology office inaugurateD in Bahrain

45,000 tons772,000

Weekly tonnage carried

by Emirates SkyCargo

TEUs handled by Khalifa Port in the

first seven months of 2015

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www.dpworld.ae

Premier gateway for over 90 weekly services connecting more than 140 ports worldwide


The UPS Foundation has coordinated flights from across the Middle East region to deliver relief supplies to Europe. The UN refugee agen-cy UNHCR worked with UPS and the World Food Program (WFP) to fly 86 tons of high en-ergy biscuits from the UN Humanitarian Re-sponse Depot in Dubai, UAE to Athens, Greece last week.

From Amman, Jordan, UNHCR and UPS organized a flight carrying relief supplies for 30,000 refugees in Greece, including 30,000 blankets, 25,000 sleeping mats and 1,000 solar lanterns. From Athens airport, UPS fa-cilitated the transport to refugees on the bor-der of Greece and Macedonia. As UNHCR‘s emergency standby partner, UPS works closely with UNHCR to airlift core relief items for lifesaving support.

“The flights from Dubai and Jordan will pro-vide vital aid to the unprecedented numbers of refugees in Europe,” commented Rami Sulei-man, UPS vice president Indian Subcontinent, Middle East and Africa District.

Over the last decade, Dubai has developed into a vital logistics hub, connecting East Africa with South Asia. The Emirate hosts the Dubai International Humanitarian City (IHC), the world’s largest and busiest logistics hub for hu-manitarian aid, with nine UN agencies and nearly 50 NGOs and commercial entities as members. Last year UPS signed a memoran-dum of understanding with IHC to provide sup-port when required.

The UPS Foundation is responsible for facil-itating community involvement to local, na-tional, and global communities. In 2014, UPS and its employees, active and retired, invested more than $104 million in charitable giving around the world.

UPS facilitateS hUmanitarian logiSticS

Dubai Trade has announced the 8th cycle of its annual flagship event, the E-Services Excellence Award (ESEA) with a new theme and categories to support the Smart City initiative and 2015 Year of Innovation as announced earlier by HH Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai.

The ESEA was launched by Dubai Trade in 2008 to highlight the application of e-services in trade and logistics and to recognise the best example on the Dubai Trade Portal which recently reached a 100% adoption rate by users on most of its services.

During this 8th cycle of the ESEA, Dubai Trade is unveiling four different award categories in line with Government efforts to encourage transactions through smart phones. The categories are the Smart

Services Award for M-Token Services; Smart Services Award for Free Zone Services; Smart Services Award for Clearance Services, and Smart Services Award for Payment Services. Winners will be selected on their total number of mobile transactions across key services provided by DP World, Dubai Customs, and Economic Zones World throughout 2015.

Dubai Trade has also launched two Innovation

awards titled ‘Dubai Trade Innovation Award of the Year’ and ‘Dubai Trade Innovator Award of the Year’ as part of the ESEA to recognise the best innovative project and the best innovative idea in the trade and logistics industry developed by individuals or organisations in the UAE.

Eng. Mahmood Al Bastaki, CEO of Dubai Trade called on the trade and logistics community to grasp the advantages of mobile services to support the Smart Government initiative and to seize the opportunity to be one of the 8th ESEA winners.

Some nine companies were recognised for their adoption of e-services on the Dubai Trade Portal in 2014. The ESEA celebrates digital transformation in trade and logistics activities in the country and underlines Dubai Trade’s role as the single window for trading transactions.

Dubai Trade announces 8th ESEA Awards

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86 tons of high-energy biscuits moved recently by UPS for refugees in Greece and the Balkans in coordination with WFP and UNHCR

World’s flagship Jebel Ali Port has retained its leadership position by winning the Best Seaport – Middle East Award for the 21st year in a row at the prestigious Asian Freight, Logistics and Supply Chain Awards (AFLAS) 2015 in Hong Kong.

The award was received on behalf of the global marine terminal operator by Rashid Ab-dulla, senior vice president and managing director, DP World Asia Pacific Region.

HE Sultan Ahmed Bin Sulayem, chair, DP World, observed: “Our focus on strengthening Jebel Ali’s role as the gateway to the Middle East, Africa and the Indian Subcontinent is paying dividends. Our proven port-centric integrated logistics solutions have been com-plemented with the acquisition of the Economic Zones World, which includes Jebel Ali Free Zone.”

Jebel Ali re-voted Best Seaport in the ME


The world of manufacturing and production is undergoing unprecedented changes with the convergence of information and operations technology, along with the emergence of modern technologies associated with the Internet of Things (IoT).

The opportunity to learn about the latest integrated control and information portfolio of products, services and solutions that can enable a connected enterprise will be the focus of this year’s Automation Fair from Milwaukee, Wisconsin, USA-based Rockwell Automation, the world’s largest company dedicated to industrial automation.

Hosted by Rockwell Automation and members of its Partner Network programme on November 18 and 19 in Chicago, the 24th edition (2015) Automation Fair event will showcase the latest advancements in tools, technologies, services and solutions that can help drive profound changes across the automation investment life

cycle. Registrations have already commenced online.

“Helping our customers realise greater productivity and increased global

competitiveness through the Connected Enterprise is our passion and a top priority,” remarked Keith D. Nosbusch, chair and CEO, Rockwell

Automation. “The 2015 Automation Fair event will help attendees learn and apply the most contemporary industrial automation and information solutions to machines, plants and production, and fully leverage the power of IT/OT convergence,” he added.

At this year’s event, more than 100 exhibitors will fill Chicago’s McCormick Place along with attendees of user-group meetings, hands-on labs, technical sessions and demonstrations. Attendees can experience Rockwell Automation products and technology at 19 hands-on labs, and participate in any of the 91 technical sessions. During nine industry- and audience-specific forums, customers and industry leaders will share best practices for the following industries and segments: automotive, chemical, food and beverage, global machine and equipment builders (OEMs), life sciences, metals, oil and gas, power and energy, and water wastewater.

Rockwell to host 2015 Automation event in Chicago

140,000 tons Annual perishable cargo tonnage capacity of Al Maktoum International Airport, Dubai South

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www.dpworld.ae

Jebel Ali Port is ranked amongst the Top 10

container ports worldwide


Saudi Arabia represents one of HIMOINSA’s main Middle East markets. According to recent reports published by TechSci Research, the diesel generator set market in Saudi Arabia will reach $709 million by 2020. In addition to these positive market forecasts are the recent sales figures for the company in Saudi Arabia. In the past 19 months, HIMOINSA generator sets represent a 7% share of the total market for gen-erator sets in Saudi Arabia.

“So far for the first eight months of the year, seven out of every 10 lighting towers sold by HIMOINSA in the Middle East have been sent to projects in Saudi Arabia”, noted Keith Webb, gen-eral manager for HIMOINSA Middle East, who adds that over 1,000 generators are currently op-erating in projects in the country.

Construction on the bridge linking Bahrain with Saudi Arabia, as well as the construction of the Makkah-Medina high speed railway, have em-ployed HIMOINSA generator sets. Most of the generators sold in Saudi Arabia have been distrib-uted to rental companies, as well as lighting tow-ers, increasingly requested by rental firms. In the past two years, HIMOINSA Middle East has sold more than 600 lighting towers in the region; 30% of them in Saudi Arabia.

HIMOINSA works in the region through its dis-tributor FAMCO, which began to made significant inroads into the Saudi Arabia market in 2013. “In the past 19 months, 33% of sales of HIMOINSA generator sets in the Middle East correspond to Saudi Arabia”, asserted Guillermo Elum, sales and marketing director in the Middle East, Africa, Latin America and Europe, who describes Saudi Arabia as “one of our major markets in the region.”

While the construction sector has been one of the most important for HIMOINSA, the company is now focusing its attention on the telecommunications, residential and industrial sectors. Areas for which the company offers innovative energy solutions.

Abu Dhabi Ports sees 41% volume increase in 2015

SaUdi arabia iS toP me market for himoinSa

Abu Dhabi Ports is handling more cargo than ever before. At the Khalifa Port Container Terminal, which is operated by Abu Dhabi Terminals, container volumes increased by 41% in the first seven months in 2015 over the same period in 2014.

Bolstered by rapid growth in polymer exports and transhipment activity across the Gulf, over 772,000 TEUs (twenty foot equivalent units/containers) were handled in the first seven months of 2015, up from 549,000 TEU in the same period in 2014.

Abu Dhabi Terminals also set new productivity records when its operations team handled the vessel APL Boston with an average gross crane productivity of 39.81 gross moves per hour (GMPH), resulting in berth productivity of 135.18 GMPH during a 19-hour, 54- minute port stay.

In the same period, general and bulk cargo saw a growth of 21% to 8.71 million freight tonnes (FT).

In 2015, all roll-on-roll-off (RORO) operations were transferred to Khalifa Port from Zayed Port in light of the

growing UAE market for the automotive sector. An enhanced yard and terminal facilities opened the door for increased customer services and provided strategic location and flexible capacity. This transition to Khalifa Port saw volume increase by 11% , given the improved efficiencies and quicker turnaround times in port. Currently, Khalifa Port offers a capacity of about 350,000 vehicles a year.

Capt. Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports, affirmed: “Our ability to handle record loads across the cargo and transportation market has been facilitated by our commitment to implementing operational efficiencies and adopting next-generation technologies.”

Other notable investments as part Abu Dhabi Ports’ efforts include the completion of the halfway mark of Stage-1 implementation of Maqta Gateway, a new port community system interlinking all of the relevant parties involved in Abu Dhabi’s growing import and export trade business.

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1,000 The number of HIMOINSA generators currently operating in Saudi Arabia


Cathay Pacific Airways and Dragon Air recently an-nounced a small increase in the volume of cargo and mail uplifted compared to the same month last year. The two airlines carried 148,109 tonnes of cargo and mail in August 2015, an increase of 0.8% compared to the same month last year. The cargo and mail load factor fell by 1.9 percentage points to 60.6%. Capacity, measured in available cargo/mail tonne kilometres, rose by 3.5% while cargo and mail revenue tonne kilometres (RTKs) flown in-creased by 0.4%. In the year to the end of August, tonnage rose by 6.0% against a capacity increase of 7.8% and a 7.9% rise in RTKs.Cathay Pacific general manager cargo sales and marketing, Mark Sutch commented: “We operated more capacity August 2015 than in August 2014 but the tonnage carried improved only marginally while the load factor fell, highlighting the overall weakness of demand.”

cathay Pacific regiSterS Small growth in cargo in aUgUSt 2015

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With the GCC’s fertilizer industry doubling its capacity in the last decade, earning $6.5 billion in revenues in 2014, the sector must evolve in traditional and new export markets to realize its growth potential, advised the Gulf Petrochemicals and Chemicals Association (GPCA) at a recent convention.

“As an export-oriented industry, the performance of fertilizer producers in the Arabian Gulf is highly dependent on global demand,” commented Dr. Abdulwahab Al-Sadoun, secretary general, GPCA. “The GCC’s fertilizer companies have strong potential in their traditional markets as well as the new ones in

Africa, building on established marketing, sales and supply chain capabilities.”

Fertilizer capacity in the Arabian Gulf grew to 40.8 million tons in 2014, a 3.8% increase from the previous year, earning revenues of $6.5 billion, according to the latest research in the GPCA’s ‘Fertilizers Indicators’ report.

With a production capacity of 17.2 million tons and 10.7 million tons respectively, Saudi Arabia and Qatar lead fertilizer production in the region. Meanwhile, the United Arab Emirates is the GCC’s third largest fertilizer producer holding a portfolio of 5 million tons, a capacity that has grown by more than 50% in the last 10 years.

groWth for gcc fertilizers DiscusseD at 6th fertilizer convention

40.8m tons GCC fertilizer capacity in 2014 $ 6.5bn The GCC’s fertilizer

industry sales in 2014

Voted as “Best Seaport in the Middle East” for 20 consecutive years

www.dpworld.ae


The Government of Afghanistan recently signed a memorandum of understanding (MoU) with the US-

headquartered Chord Group to establish a series of Special Economic Zones in the country as part of the roadmap to Afghanistan’s economic development plan.

The signing and sealing of the MoU took place alongside a high level private event in Dubai for the ‘Commercialisation of Military Bases in Afghanistan’ and was attended by officials from the Afghanistan Government and eager regional and international business leaders, private sector investors and international partners supporting the economic growth potential in Afghanistan.

Over the past 12 months since the election of the National Unit Government in September 2014, Afghanistan has implemented a vast array of vital reforms to enable the country to develop full economic independence. These reforms have seen significant changes in the construction, mining, healthcare, banking and the agricultural sectors among others.

Afghanistan pursues economic progress with proposed establishment of SEZs

Earlier this year, the Afghan Government established a Special Economic Zone (SEZ) Committee, to review how these tax and labour-concessioned zones could be used to stimulate local employment and attract foreign direct investment.

A recent study and recommendations by ‘Harakat’, a non-profit Afghan managed organisation tasked with improving Afghanistan’s business climate and supported by a number of international organisations including the UK’s Department for International Development (DFID), the United Nations and USAID, concluded that the establishment of SEZs in Afghanistan would send a signal to investors that the country is committed to supporting private sector development, and could encourage higher levels of foreign investment, in line with the conclusions of the London Conference on Afghanistan held in December 2014.

This eventually led to the establishment of the Afghan Airfield Economic Development Commission (AAEDC),

chaired by the ebullient, articulate and charismatic Mohammed Daoud Sultanzoy.

Speaking exclusively to Logistics News Middle East, Sultanzoy stressed that Afghanistan is a country potentially rich in minerals, agriculture, horticulture, power generation and energy. “Afghanistan has large untapped resources in mineral wealth, precious stones, commodities and abundant water supply from rivers flowing out of the country into other neighbouring nations asserted Sultanzoy. “If fully harnessed we will be a power surplus country capable of producing 35,000 megawatts of energy a far cry from the 1,500 megawatts we are currently producing. Additional energy can also be harvested from proven oil and gas reserves, wind and solar sources and this makes a cast-iron case for Afghanistan to become an energy exporting nation,” affirmed Sultanzoy.

Sultanzoy emphasised that several factors make Afghanistan the prime destination for investment. “Afghanistan is the new frontier for trade, commerce and investment. We have a growing population

A f g h A n i s t A n e c o n o m i c i n i t i A t i V e

Mohammed Daoud Sultanzoy, Chairman, Afghan Airfield Economic Development Commission (AAEDC), second right with Jason Blick, Chairman, The Chord Group (second left) at the MoU signing ceremony. Also seen is the Hon. William McKeeva Bush, OBE, and member of the Cayman Islands Legisla-tive Assembly (extreme left) and Khaled Monawar, Advisor to the Minister of Finance, Afghanistan (extreme right).


base of 35 million people clamouring for consumer goods, an educated workforce, improved infrastructure with the recent building of thousands of miles of highways in addition to instituting the legal framework for secure banking and financial transaction, property ownership laws and other legislative requirements,” assured Sultanzoy.

Sultanzoy lauded the Afghan Government’s decision to create a series of ‘Special Economic Zones’ (SEZs) that allows the Commission to create a managed and optimised environment in Afghanistan to attract foreign investors into key sectors of the country’s economy. Investment in these sectors in turn will transform other industries, creating direct and indirect local employment. It also simplifies the issuance of visas, customs and other processes required to bring specialist labour and equipment required for business operation within the SEZ facilities.

Allaying fears on the security situation in Afghanistan, Sultanzoy said: “The biggest problem when it comes to Afghanistan is perception. I am here to say that although we sporadically hear of reports of violence, the country by far is safe and secure and we are open for business. Afghanistan is full of opportunities and there is a lot of promise and potential for investors coming into the country. We now have the legislative and legal framework and physical infrastructure in place to attract businesses. We are ready and willing to do business,” he added.

Sultanzoy also commented that the peace dividend derived as a result of pursuing economic reforms and taking new initiatives would benefit the region. ‘’We are

an equal opportunity entity and welcome investors from all over the world. We have no preferences and will not discriminate investors no matter where they are from. To date, we have received encouraging responses and mounting interest from companies and governments from the Unites States of America, China, Russia, the GCC nations, European and Far Eastern countries and from the hinterland including Iran, the CIS countries and some African countries—truly an eclectic mix,” he observed.

The signing of the memorandum of understanding between the Chord Group and the Government of Afghanistan represents an important step in realising the new economic vision for the country.

Jason Blick, the Miami, USA-based chairperson of the Chord Group speaking to Logistics News Middle East, said: “We have always been keen on doing business in Afghanistan and foresee tremendous opportunities. We are also enablers of peace and stability in the country through trade, and industrialisation that will provide employment to the people and both lay and strengthen the foundations for increased commerce and economic growth,” he maintained.

“Logistics, transportation, construction and supply chain companies will be the biggest beneficiaries of opportunities coming out of Afghanistan. Geographically, the shared borders and the strong agricultural base, along with the opportunity to modernise its national infrastructure, are good foundations for an effective SEZ that can have a long-term impact on a country. SEZs are about ease of conducting business and we are delighted

to share our expertise and experience with the Government of Afghanistan to set the blueprint for a new phase of economic prosperity and higher standards of living for Afghans,” he added.

The Chord Group is a turnkey provider of Special Economic Zones and establishes, invests-in, develops and operates SEZs across the world.

“In order for Afghanistan to create a true free market for business and enterprise that provides a solid regulatory framework we sought out for industry leaders that can help guide us toward creating effective implementation plans. I am pleased to report the recent relationship developed with The Chord Group to add value to AAEDC as we further our Invest Afghanistan campaign,” remarked Sultanzoy on the Government’s partnership with the Chord Group.

Apart from Sultanzoy and Blick, high profile officials attending and making keynote speeches at the Convention that followed included from the Afghan delegation, Eklil Hakimi, minister of finance; Asif Rahimi, governor of the western Herat province; Abdul Shamshi, deputy governor of Kandahar province; Abdul Sattar Murad, minister of economy; Humayoon Rasaw, minister of commerce & industry; Sadat Naderi, Minister of urban development and Hekmat Karzai, deputy minister of foreign affairs.

The Chord Group is one of the world’s largest special economic zone consultancies, with 22 offices across the world and 500 staff. The Group consults regularly to governments across the world including the US, Caribbean, Central America and China.

A f g h A n i s t A n e c o n o m i c i n i t i A t i V e


TwinTec: Leader in fLooring

TechnoLogySpecialist UK-headquartered flooring contractor the Twintec Group, has been in the van-guard of specialised technology that reinforces its supremacy in constructing durable floors that ensure operational efficiency and reduce maintenance costs. The company is targeting logistics and warehousing companies, in the Middle East and North Africa for anticipated growth in the region.

The Twintec Group, the global market leader in ‘jointless’ steel fibre reinforced concrete (SFRC) industrial floor slabs, derives its name from the

twin technologies of concrete and steel fibres, a proprietary technology.

It has long been acknowledged that the concrete floor slab is one of the most important components of a modern warehouse facility – day to day operations and efficiencies depend on it. End users need to invest in the best for their specific requirements.

It is well documented by engineers and researchers that reducing the number of

joints in a floor slab will have a major impact on operational efficiencies as well as floor and MHE (Materials Handling Equipment) maintenance costs.

A ‘jointless’ SFRC floor slab will contain no mesh or rebar and the concrete is reinforced entirely with steel fibres throughout the depth of the floor slab and contain no sawn induced contraction joints but only steel armoured construction joints at the edge of the panel.

In Dubai to attend the recently concluded 8th biennial Materials Handling Middle East Exhibition, Ruth Waugh, international business development director, Twintec

spoke exclusively to Logistics News Middle East on the sidelines of the show.

“Industrial flooring ideas and concepts have evolved in the recent past and customers globally are becoming increasingly demanding today as they become more aware of the floor slab to their business efficiencies,” she begins and stresses that demands placed on a floor are higher than ever. “Specifications and requirements include higher racking to optimise space requires a super flat floor; MHE equipment operates 24/7 to meet business needs; operational efficiencies that do not allow time to close sections of warehouse for


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guarantee. The unique DBI total responsibility package comprises in house design by industry recognised experts in SFRC ‘jointless’ slab design, backed by product liability insurance; the supply of all materials; the construction of the floor by experienced, skilled staff; the high tolerance super-flat floors; warranty of five years and no split responsibility between contractor, designer, materials suppliers and other associated vendors.

Some of Twintec’s top projects and accomplishments in the region in the recent past include the recent completion of the Ikea Distribution Centre project in Dubai World Central; a 58,000 sqm. parts distribution warehouse in the Sohar Freezone in Oman and other mega projects

in Saudi Arabia. The Twintec Group continues to perform

well on the global stage maintaining market share in mature markets even considering some challenging economic conditions. Twintec designed and constructed over 300,000m2 of SFRC ‘jointless’ floor slabs in the GCC over the first half of 2015 and have a strong order book going through into 2016.

Waugh also indicated that the Middle East region and North Africa have been the growth markets over the past 12 months and the majority of the major projects have been secured from within the growing logistics industry. “The growth of the logistics market throughout the GCC, larger more sophisticated warehousing environments

TwinTec’s proprieTary sfrc TechnoLogy

f L o o r i n g

The technology has been used successfully in Europe for over 30 years and is slowly gaining recognition in the GCC to replace traditional floor slab construction The biggest problems seen in floor slabs is breakdown of joints and the ideal floor would have no joints.

When joints breakdown, the maintenance costs for not just the floor but the MHE equipment is substantial. The business interruption costs are high. Business operational efficiency is significantly reduced due to reduced operational speed.

Use of steel fibres compared to traditional mesh/rebar can reduce the slab depth required to take the floor loadings resulting in less concrete required. Use of steel fibres coupled with the skilled workforce can reduce production time on site by 50%.

No saw cut joints means less joints to maintain year on year. Twintec ‘jointless’ slabs will provide clients with a floor that saves them money year on year and improves the efficiencies of their business.

repairs; MHE needs to operate at full speed to meet business operational targets puts increased emphasis on proper and specific floor construction,” she continued.

Twintec’s large ‘jointless’ floor panels are ideally suited to the logistics industry. Growth in the industry fuels demand for more warehouses – directly owned or 3PL – which means more floors for Twintec. The company focuses on industrial type projects, specifically logistics and general warehousing environments, but also hangars, manufacturing facilities and other applications that would benefit from a large panel ‘jointless’ floor.

At the core of Twintec’s business success is the ‘Design-Build-Insure’ (DBI) concept that is part of the company’s total service


f L o o r i n g

and a desire for quick construction is significant for Twintec. In addition, projects have also been completed in Oman, Bahrain and Jordan” she stated.

Twintec’s growing portfolio of completed projects within the Middle East region also includes working for well know clients such as Panda supermarket, Caterpillar and Al Madina Logistics in Barka, near Muscat in Oman. Twintec will be working on the new Convention Centre and for other projects with Oman’s Ministry of Defence (MoD) in Oman in 2015.

Waugh also affirmed that local staff are supported by experienced technical and management colleagues within the Twintec group. “The workers that construct the slabs are the stars in the Twintec Group, skilled,

experienced, professional and with a driven work ethic they work in often extremely challenging conditions to deliver quality and construct to programme,” she added.

Twintec is committed to growing its business in the region. “The Group ethos is to develop close relationships with clients – repeat business, quality, value, honesty and trust are critical to business success – values that run across the Twintec Group worldwide,” asserted Waugh.

Expanding operations within the Middle East and opening a new branch company in Thailand have been key focuses for Twintec whilst continuing to maintain high quality production output and value engineered designs.

Large logistics warehouses in the UAE

and other GCC nations are emerging as key growth areas with companies investing significant sums in expanding and updating their distribution facilities. “These facilities can benefit from the technology of a Twintec ‘jointless’ slabs to improve their operational efficiencies, future proof their building and significantly reduce their year on year maintenance costs compared to traditional slab construction alternatives,” emphasised Waugh.

“Twintec are not alone in having faced challenges globally over the past few years but have continued to invest in key areas of the business including research and development, introducing new construction joints and recycled fibres into floor slab design and construction,” averred Waugh.


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Logistics services providers are making a beeline and gravitating to Africa and others are contemplating making forays or expanding operations as more and more companies realise the growing potential and latent

possibilities on the continent.

AFRICA RISInG


c o V e r s t o r y

Africa is the world’s second-largest and second-most-populous continent. With 30.2 million sq.km. total land area and a

population of 1.1 billion and growing, 54 inde-pendent countries and a fast-developing logistics infrastructure, Africa presents potential and op-portunities for progress.

The continent is home to power house econo-mies such as South Africa, Nigeria and several OPEC and non-OPEC oil and gas exporting countries including new entrants Angola, Mo-zambique, South Sudan, Gabon, Equatorial Guinea and now Egypt, where new gas reserves have just been identified and the new enlarged $ 8.5 billion Suez Canal officially inaugurated.

Fast-growing trade and commerce, the discov-ery of oil and gas and the emergence of energy-driven economies in several countries; abundant agrarian and mineral resources; a young and am-bitious population; a rising middle class with considerable disposable income;s and increasing appetite for FMCG and a vast array of other electronics, material and industrial goods, implies the continent is primed for a major take-off in its supply chain and logistics sectors.

According to the Economist Intelligence Unit (EIU), Africa’s GDP is set to grow by between 5% and 6% from 2015 to 2018. Africa is however not a country and any statistics or estimates of growth must be taken on a country to country, case by case basis. However, even with this being the case, about 17 countries in Africa will grow by more than 5% in the next three years. The short and medium terms outlook for Africa’s sup-ply chain and logistics industry have to be under-stood in the context of what is driving growth as well as the areas of opportunity that are attract-ing investment including infrastructure spending.

Gone are the days when Africa’s growth and opportunities were defined by Cape Town and Cairo only. Today, the growth of cities around

the tropics has much to explain about Africa’s re-cent growth. Rapid urbanisation and the growth of Africa’s middle class has spawned a consumer boom clustered around the major cities in Africa.

regional integration: The infrastructure imperativeHeavy infrastructure investments are taking place across the continent, underscoring regional inte-gration and intra-African growth. Across the con-tinent considerable efforts are underway to boost intra-African trade by developing new transport links between major cities. Although financing of these infrastructure projects is an issue, several in-ternational organisations and private companies have pledged their support.

new frontiers for the global supply / Value chainAcross Africa, new areas are opening up, which were prior considered inaccessible as well as reaching populations deep inside Africa that were marginalised, ignored or simply too poor. Thanks to the recent growth in Africa driven by investments in infrastructure, rising incomes and financial inclusion driven by mobile money trans-fers, much of Africa is quickly integrating into the fold of global value chain networks.

new infrastructure and new investments:New infrastructure financing of flagship projects is coming from the following sources:

1National governments’ budget alloca-tions – Governments are now more than before realising the need for infra-structure development as a key driver of growth and as such they are setting

aside funds major transport networks inland as well as connecting to neighbouring countries.

2Capital Markets have become a pre-ferred source of financing for gov-ernments to fund infrastructure de-velopment as this comes without the usual terms and conditions like

aid and grants have. Kenya and Rwanda are good examples of countries that have successful-ly tapped into this form of financing.

3Public Private Partnerships (PPPs) are also quickly becoming the preferred funding option for most governments’ heavily capital intensive projects includ-ing the building of railway and road

transport networks.

4Bilateral and Multilateral Partner-ships where government and mul-ti-government agreements for funding are reached to fund major investments in transport.

supply chain financing and commodity financingNew frontiers of possibilities and opportunities lie in the development of warehousing receipts systems as alternative instruments for financing and supply chain.

With the new efficiencies and the growth of technology, new innovations around the flow of information and goods will only increase the speed of growth of this hugely untapped oppor-tunity. That will, for example, mean that a com-modities trading transaction will be handled and completed in Dubai, via secure and safe ware-housing receipt instruments.

The newly and expanded ports and the more ef-ficient customs and clearing systems will further aid the easy and smooth trading between Africa with itself and with the rest of the world. This calls for quick action on actions to unclog the sup-ply chain and logistics bottlenecks inland and at the ports of transit, both seaports and airports.

development of new infrastructureNew infrastructure need to be in place to meet the demands of development. These include the facilitation of project and heavy cargo move-ment, provision of good roads, air and sea ports, air and sea freighters, rail heads, locomotives and other efficient and necessary logistics systems and equipment.

Cargo in Durban Port

“UAE’s global value chain connectivity presents for Africa’s businesses the opportunity to access international markets,

technology and knowledge transfer, long-term secured buyer – supplier orders and

relations, reputation and brand development.”


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In conversation with James Mwangi, MD, Affronta DMCC

on the current scenario for africa’s logistics industryThe scenario on the continent is changing quickly and rapid advances are made across all sectors. Africa is now on the mind of eve-ry business leader crafting their company’s strategy. To quote Kofi Annan, the former UN Secretary General, “Africa’s profitabili-ty is the best kept secrets in today’s world economy.”

The hard infrastructure as well as the soft infrastructure are redefining how Africa connects within itself as well as with the rest of the world. Africa however still has a huge infrastructure deficit compared to the rest of the world and therefore has a huge gap to catch up on in terms of infrastructure and logistics growth.

For example, the paved road density length of paved road per unit of area in 2008 stood at 31 for sub-Saharan Africa against 134 for other low income countries.

There has been a redirection to redefine the continent’s infrastructure which has seen the bulk of national development budgets going towards infrastructure investment. Also most bilateral and public private part-nerships across the continent are skewed to-wards building new railway networks, new highways and expanding airports and sea-ports as well as drawing new frontiers of connectivity within the continent to promote intra-Africa trade.

on the significance of the logistics sector in the overall africa economyA speaker from UPS at a recent seminar said that the world has enough food for everyone, just poor infrastructure and connectivity. Without belittling the scourge of poverty across the world and within Africa, the state-ment rings true most in Africa where you can have a starving population on one end of the country while the other end of the same country is throwing away ‘excess’ food.

The leaderships of various countries are slowly waking up to this reality. Those that moved fast enough are realising greater than average GDP growth projections. For exam-ple Ethiopia or Kenya which have lately in-vested huge proportions of their national budgets towards investment in infrastructure

are tipped to grow by between 8% and 6% in 2015. Therefore the presence of or the lack of proper logistics networks within each country has a direct correlation to the growth or stagnation of the country’s devel-opment.

on the growth of trade in africa year-on-yearAfrica’s trade with the world has been grow-ing steadily by between 3-5% in the last dec-ade since 2004 with a dip in 2009 following the global economic crisis. Africa’s trade in 2012 stood at $ 60 billion against $ 50 bil-lion in FDI. African trade however still re-mains at below 3% of global trade. Intra-Af-rican trade is growing and opening up much faster at 12.5%, driven by increased connec-tivity and removal of hard and soft trade barriers – quotas and tariffs, and exports documentation. The bulk of Africa’s trade remains with the US and Europe with the balance of trade favouring the developed na-tions. However, informal (or unrecorded trade) is significant across many countries in Africa.

on Uae-africa trade The UAE, by virtue of its strategic location, plays a major part of Africa’s logistics and supply chain being the midpoint between Africa and the East (as well as the world due to transport connectivity).

UAE’s global value chain connectivity presents for Africa’s businesses the opportu-nity to access international markets, technol-ogy and knowledge transfer, long-term se-cured buyer – supplier orders and relations, reputation and brand development.

Opportunities exist for Africa within the Middle East’s Halal food market, which re-main largely untapped by African businesses.

on africa-Middle east bilateral trade The balance of trade between Africa and the Middle East is still largely in favour of the Middle East and understandably so as it is driven by the imports of oil and petrochemi-cal products, as well as the importation of vehicles and heavy industrial machinery. On the other hand Africa exports un-processed agro commodities which do not result in huge foreign exchange inflows.

profiLe: JaMes Kanyiri Mwangi

Kenyan national James K. Mwangi is Managing Director, Affronta DMCC, the Dubai-based advisory consultancy for Africa trade, capital flows, trade and investments.

A qualified, experienced busi-ness professional focused on providing value added manage-ment information to facilitate effective decision making, Mwangi’s expertise lies in invest-ments, mergers and acquisitions and financial services.

A graduate from the University of Nairobi and a post-graduate MBA from Murdoch University, Mwangi has had a good track record working for some regional heavyweights including Zurich Financial Services; DP World; the Royal Group and Al Ghandi Group of companies.


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industrial sectors with the most growth op-portunities in africaFood processing and packaging industries, cold storage facilities, agriculture, real estate developments

on african countries with the most growth potential going forwardEthiopia – estimated growth for 2015 at 8% driven mostly by rapid opening up of the country’s prior closed economy, infrastruc-ture development, sound fiscal policies and leadership large diaspora and a healthy do-mestic population to support local consump-tion.

Kenya – estimated growth for 2015 at 6% driven by growth in middle class consump-tion, infrastructure investments, greater re-gional trade, and a general optimism among businesses and international investors.

on some large infrastructural investments / projects in africa that are game changers and expected to change the face of logistics land-scape on the continentThe LAPSSET Corridor – Lamu Port South Sudan Ethiopia transport corridor is set to be the next biggest thing and will disrupt the state of logistics across Eastern Africa in the short to medium term.

The Standard Gauge Railway network connecting across Kenya from Mombasa, into Uganda and Rwanda and the expansion of the port of Mombasa adding more berths are other examples of large infrastructural projects

on how the logistics landscape is changing and evolving in africaThe fundamentals of logistics involve heavy investments in infrastructure development. Most countries are forced to borrow inter-nally or externally to fill the gaps left by their commitment to improving efficiency in logistics through investments in infrastruc-ture. This calls for bilateral discussions and agreements which sometimes are slow and tedious and carry many negotiations. They are however necessary as they allow the Af-rican governments room to meet recurring current expenditures to meet critical social needs.

on the opportunities the established and nou-veau oil economies such angola, drc, equato-rial guinea, south sudan, Mozambique pre-sent for trade and commerce for Middle eastern companiesOpportunities on the energy front include the development of oil field services compa-

nies; EPC (engineering, procurement, con-struction) consulting services; technology and know-how transfer and investment in explorations.

on the performance of the mining and agricul-tural and horticulture sectors in africaMining – this is country specific with some traditional countries doing better than their counter parts. DRC, Tanzania, Western Af-rica, Southern Africa doing better except for the oil and gas producing countries which are struggling under the current regime of international oil prices.

Agriculture and horticulture – country specific metrics are key. Ethiopia, and much of East Africa doing well in the export of horticultural products including flowers while most of Western Africa are doing well in traditional products like cashew nuts and cocoa. Zambia, Zimbabwe (Southern Afri-ca) doing well in long life agro-commodities like maize (corn) and cereals and pulses.

on the challenges confronting the continent on the industrial and logistics frontsSupply Chain Finance - The main challenge is the deficit in finance to put up food process-ing, and food preservation facilities including

cold room storage facilities; as well as supply chain finance to facilitate transactions.

on political stability in africaThe last of Africa’s instability spots should now be solved with the peace accord between the warring factions of the South Sudan gov-ernment. The central part of Africa and well as Mali and Burkina Faso continue to be problem areas. Disputed elections across some countries like Burundi water down the general trend and progress on the continent. Terrorism across North Nigeria and parts of North and sub-Saharan Africa as well as in Somalia is a matter of concern. There are 54 countries in Africa though, and a few bad re-gimes sully the image of the whole continent.

optimism in the logistics and supply chain sec-tor on the continentAfrica is likely to stay in a boom for foresee-ably the next five to 10 years driven by the various multi-sectoral and multi-facetted fac-tors. This growth may vary from country to country depending on each country’s dy-namics but mostly driven by good leadership and proper governance in addition to contin-ued investments in key fundamentals like infrastructure.

The port in Stone Town, Zanzibar, Tanzania, Africa


c o V e r s t o r y

CoST oF TRAnSPoRT

Region Average cost to export

($/container)Average cost to import

($/container)

SADC 1856 2273

COMESA 1915 2458

ECOWAS 1528 1890

CEMAC 2809 3721

MENA 1049 1229

EAST ASIA / PACIFIC 890 935

SOUTH ASIA 1512 1745

LATIN AMERICA 1311 1441

EASTERN EUROPE & CENTRAL ASIA 1652 2458

EU 1025 1087

OECD 1059 1106

Cost of transport is still too high and competitively inefficient when compared to other regions of the world. This hinders the competitiveness of African goods in foreign markets due to the high cost of transportation (see chart below).

Key: COMESA—the Common Market for Eastern and Southern Africa is the largest regional economic organization in Africa, with 19 member states and launched a customs union in 2009. It is headquartered in Lusaka, Zambia. COMESA countries include Burundi, Comoros, D.R. Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia and Zimbabwe. ECOWAS is the 15-member Economic Community of West African States comprising Benin, Burkina Faso, Cape Verde, Ivory Coast, The Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo. Founded in 1975, ECOWAS is headquartered in Nigeria’s capital city Abuja.1999-established, Bangui—Central African Republic (CAR) headquartered CEMAC—the Central African Economic and Monetary Community comprises 6 nations—CAR, Gabon, Cameroon, Chad, Republic of Congo (Brazzaville) and Equatorial Guinea. OECD: Organisation for Economic Cooperation and Development. 20 member nations largely from among the Western and developed world. Source: Abidjan, Ivory Coast headquartered-African Development Bank (AfDB) statistics derived from ‘Doing Business Report 2011’


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As the region’s largest logistics provid-er with more than 6,700 employees in 21 countries across the Middle East and Africa, Agility is uniquely

positioned to support customers by providing a true end-to-end service which spans freight for-warding from suppliers across the globe, regional hub operations, customs clearance, and onward distribution via its MEA network.

Agility provides a wide range of logistics ser-vices and specialty solutions with a strong net-work, and extensive experience in the region’s di-verse and challenging operating environments. This is backed by owned-assets, including the re-gion’s largest distribution centres and premier fleet of trucks. The company’s Dubai offices were established over 12 years ago and currently operates from five offices and four warehousing facilities across the UAE.

Speaking exclusively to Logistics News Middle East, Sylvain Kluba, the Zurich, Switzerland-based chief operating officer, Agility, Middle East and Africa (MEA) said he is delighted with his company’s growing forays in the region and on the continent. “Agility is rooted in emerging mar-kets and that is where our greatest strengths lie. We provide our customers with tailored services over long periods of time. Africa is very impor-tant to us, and the continent has enormous un-tapped potential,” he explains as he enumerates the trends that continue to shape growth and de-velopment within the continent.

Widespread and rapid urbanisation has led to cities becoming home to an increasingly educat-ed and economically empowered middle class, in turn, creating for the first time in Africa’s history a strong domestic consumer market. This clearly presents a great deal of potential for investors into the region. Furthermore, whilst it is not yet a reality, there is a growing interest in industrialisa-tion and the development of a manufacturing sector both within several countries and external investors in order to tap resources, create jobs and add value to the available raw materials.

Agility’s current focus is on expanding its foot-print and growing its West Africa operations to serve the growing oil and gas industry within Ni-geria, as well as the growing consumer markets of Angola and South Africa. Elsewhere in Afri-ca, Agility is represented by a network of strate-gic partners and agents. The company has invest-ed heavily in developing capabilities and assets in Africa since 2006 – especially in warehousing and transport. It now has its own operations in Kenya, Uganda, Algeria and Egypt through both acquisition and green-field investments and its business in East Africa is making rapid progress.

Furthermore, according to Kluba who over-sees the company’s operations and expansion across the continent, Mozambique presents a number of opportunities, particularly linked to the abundance of mineral resources. According to the African Development Bank, the country is expected to sustain growth rates of over 8%, as

investments continue to flow in. “Tanzania as a viable future transport hub, with the potential to serve growing economies in the land-locked heart of Africa from Uganda on its north border to Malawi in the south. Our teams in Africa cur-rently consist of 98% local composition, which is testimony to our long-term commitment to the continent,” added Kluba.

Logistics is a key factor to any business ven-ture, but especially to a new market launch. A well-planned, solid supply chain can be the dif-ference between a rapidly successful initiative and a struggling one. As with all emerging mar-kets, there are a range of challenges including political risk, weak corporate governance, mac-ro-economic volatility and a lack of infrastruc-ture. However, there are also a number of posi-tive developments, and progress is being made. This is evident as more African countries have continued to establish political stability in recent

Agility prioritises, makes inroads in AfricaAgility has been taking rapid strides in Africa buoyed by the company’s ability to understand and prepare for the complexities of operating in new and young territories and emerging markets.


c o V e r s t o r y

years, improved governance and transparency and are becoming increasingly open to regional and global integration.

Agility has roots in emerging markets and as such, extensive experience in the region’s diverse and challenging operating environments. “We also help mitigate these challenges by sourcing local expertise and working closely with our cus-tomers to make supply chains more efficient and effective. In the difficult and fast-changing econo-mies of Africa, we offer the exacting perfor-mance and high ethical standards of a long-estab-lished, developed market logistics player underpinned with a global network, international best practice and a strong reputation,” reflected Kluba on Agility’s growing Africa footprint.

According to the IMF Africa is home to 10 of the fastest growing emerging markets in the world, and Kluba is confident that logistics will continue to be a key factor to sustaining this

growth. Multi-nationals are increasingly looking to take advantage of the mushrooming African economies as demands for their products and ser-vices rise, but the interest to invest in a country de-pends largely on the companies’ ability to access relevant areas and transport their goods easily.

Kluba also sees advances in the African econ-omy driven by a wide range of factors, including infrastructure developments, increasing agricul-tural demand, a growing energy industry and a burgeoning middle class with rising spending power, the inward and outward flow of goods to and from the continent is ever increasing. On the other hand Kluba is also conscious of the pitfalls and challenges that Africa is posing to multinational companies that include political instability, civil wars, the lack of transportation and storage infrastructure, random acts of ter-ror, the vastness of the continent and abysmal poverty among others.

To date, Africa’s significant growth has taken place in spite of its limited infrastructure develop-ment and a pronounced infrastructure deficit re-mains the main obstacles to growth across the continent. In order to redress this deficit the World Bank estimates that it would take $93 bil-lion a year in investments across the continent. Improvements to African infrastructure would certainly have a substantial impact on the logis-tics industry, lowering transport costs, and im-proving lead times as well as unlocking regional trade and boosting integration.

Logistics is a key factor to any business ven-ture, but especially to a new market launch. A well-planned, solid supply chain can be the dif-ference between a rapidly successful initiative and a struggling one. As with all emerging mar-kets, there are a range of challenges including political risk, weak corporate governance, mac-roeconomic volatility and a lack of infrastruc-

ture. However, there are also a number of posi-tive developments, and progress is being made. This is evident as more African countries have continued to establish political stability in recent years, improved governance and transparency and are becoming increasingly open to regional and global integration.

According to the IMF Africa is home to 10 of the fastest growing emerging markets in the world, and Kluba is assertive that logistics will continue to be a key factor to sustaining this growth. “Multi-nationals are increasingly looking to take advantage of the mushrooming African economies as demands for their products and ser-vices rise, but the interest to invest in a country depends largely on the companies’ ability to ac-cess relevant areas and transport their goods easi-ly,” he affirmed.

The removal of obstacles to intra-Africa trade, and improvements to infrastructure and connec-tivity, are important steps towards increased trade within Africa, which will create opportunities for transportation and logistics service providers on the African continent. “Our approach at Agility is to take the long-term view. Shaped by experi-ence in the world’s most difficult markets, we minimize risk for our customers by going in early and investing in infrastructure that allows us to deliver highly rated services anywhere in the world,” stated Kluba.

Agility is also poised to take advantage of its strengths in the UAE and the GCC to capital-ise on its growth programme in the region and on the continent. “The UAE provides a multi-tude of air, land and sea connections linking the east and west and with the explosive growth of global and regional trade, the UAE enjoys unprecedented opportunities to capital-ise on the unique strength of its favourable geo-graphic location,” he avowed.

gcc’s africa inVesTMenTs

Gulf investments within Africa have been rising with increased fervor, during the period from 2003–2012 this totaled $ 144 bil-lion and the region has allocated a further $ 61 billion annually to be assigned across a number of sectors, including infrastructure, telecoms, logistics, agriculture and the oil and gas industry.

A view of an Agility warehouse


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Freight Reach Services (FRS), founded in Dubai in July 2010 by a team of com-mitted logistics professionals with abun-dant expertise, capabilities and extensive

global experience in the freight and forwarding in-dustry, offers a comprehensive package of value-added freight solutions including air, sea, road freight and multimodal transport to Africa, the In-dian subcontinent, the Far East, Europe and the USA.

Africa has been in FRS’ focus since its incep-tion and the company has developed a wide net-work of offices, agents and representation across the continent. “Africa is very significant for our operations and a whopping 70% of our business turnover comes from this continent,” reveals Ra-jagopalan ‘Raj’ Subramanian, CEO, Freight Reach Services in an exclusive interview with Lo-gistics News Middle East. “Our strategy and pri-ority has been to develop the Africa trade lane and we foresee a lot of potential in this vast conti-nent. The commercial ports of Mombasa and Dar Es Salaam serve as our two gateways through which we serve Kenya, Tanzania, Uganda, Rwanda, Burundi, Zambia and other Southern and Central African countries in Africa,” he adds.

According to Rajagopalan, Kenya, Zambia and Uganda are the biggest markets for FRS fol-lowed by the Democratic Republic of Congo (DRC), Rwanda and Burundi, which are fast catching up. “FRS offers comprehensive logistics solutions to this fast-growing continent. We do air, sea, road and rail transportation into Africa. We also do hinterland and inland transportation across the region. Our full-fledged offices, com-plete facilities and professional capabilities in Afri-ca imply that we can offer a wide-ranging suite of services to our customers and the trade,” notes Rajagopalan.

FRS support African traders from across the continent—importers and exporters who come into Dubai to purchase and trade goods. The company’s employees constitute several African nationalities in the UAE in addition to local staff

in its regional offices. Its warehouses both in Jebel Ali Free Zone and Nairobi, Kenya, serve as hold-ing points shipments for finite periods prior to de-livery at destination.

FRS performed well in 2014 and closed with sales of $ 22 million which represented a 30% growth over the previous year. Rajagopalan ad-mits 2015 has been a challenge due to oil price de-pression and also the strengthening US dollar. “We expect to do 10% lower in 2015 than 2014. Under the current conditions, this is a general eco-nomic malaise faced by all,” he states candidly.

However even in this scenario, Africa continues to dominate FRS’ business.

80% of FRS’ business is sea freight. The com-pany’s airfreight component is also growing year on year. Multiple airlines have given freight for-warders options on space, price and connectivity. Sea freight volumes will continue to grow as some products and volumes can only be served by sea, he observes. “Also due to our presence in Dubai we are the hub for both sea and air into Africa with lot of options we can provide our custom-ers,” affirms Rajagopalan.

Freight Reach Services reaches out to AfricaAfrica accounts for 70% of FRS’ annual business turnover and the continent is top priority for the company. Now well entrenched in East and Central Africa, the company plans expansion into Southern, West and sub-Saharan Africa.


c o V e r s t o r y

In Rajagopalan’s estimation, virtually all in-dustry sectors are growing in Africa. As the continent’s economy and trade develops, the population needs consumer goods, commodi-ties, health sector products, construction mate-rial, heavy machinery and also project cargo. There are also a lot of ongoing UN, World Bank and various NGO projects in addition to new investments coming from wealthier na-tions keen to harness the continent’s abundant agro and mineral resources.

Rajagopalan also foresees good logistics growth potential going forward. “In the loca-

tions we are in, we expect all the markets will grow. There is also political stability and recon-ciliation in many countries where formerly there was strife and civil wars. Governments are pushing for reforms and development, which bodes well for national and regional econo-mies,” he asserts.

Although growth is in the energy sector is stunted due to falling oil prices, many Afri-can governments are investing in the oil and gas sectors for the future. Rajagopalan is hopeful a lot of project business will unleash for the energy industry and general infra-

structure if and when oil prices rebound.FRS plans to explore and expand now into

other parts of Central, Southern and the emerging economies of West Africa—Nige-ria, Ghana, Ivory Coast, Cameroon and sub-Saharan Africa following its successes in East Africa. However, the road ahead is fraught with challenges.

“There is a lack of proper infrastructure and policies to support the growing economies. However, in fairness, there have been improve-ments in many countries as they try to develop, but still a lot still needs to be done,” he rues.

freighT reach serVices

We are represented in Nairobi and Mombasa (Kenya); Kam-pala (Uganda); Kigali (Rwanda); Lusaka, Kitwe and Ndola (Zam-bia); Dar Es Salaam (Tanza-nia) and Kinshasa, Goma and Bukavu (Democratic Republic of Congo—DRC). All the offices has been set up in the last five years are fully owned by FRS. The company has warehouses in Nairobi, Kenya in addition to Jebel Ali Free Zone.

“Our full-fledged offices, complete

facilities and professional

capabilities in Africa imply that we can

offer a wide-ranging suite of services to our customers and

the trade,”

Rajagopalan Subramanian, CEO, Freight Reach Services


c o V e r s t o r yc o V e r s t o r y

The Midom narrative begins humbly with the Dubai-founded company’s first foray in Africa as the author-ised distributor of Nokia in Rwanda

in 2004. Thereafter, the Midcom Group moved swiftly along both to expand its portfo-lio and presence, becoming a strategic partner for leading global IT, telecommunications and consumer electronics blue chip companies such as Microsoft, Samsung, Huawei and Le-novo in the Middle East and African markets.

Its diversified interests range from distribu-tion to manufacturing, FMCG, retail, manu-facturing, education, forex, real estate, food, commodities, dairy and agro. Logistics News Middle East met up recently with Akash Ku-mar, Group Managing Director, who has been with the Group since inception and has been responsible for growing the company from an East Africa trading house to a trans-national business giant. Midcom presently has offices in Kenya, Uganda, Tanzania, Rwanda, Nigeria, Ghana, Senegal, Saudi Arabia and headquarters in the UAE.

According to Kumar, the company has leapfrogged to become a major African dis-tributor because of its significant use of tech-nology. “While most companies in Africa still rely on the traditional means of doing busi-ness, Midcom has gone a step ahead and de-veloped its own applications to track availabil-ity in various partner retail outlets and to monitor performance of its sales staff. This capability has enabled Midcom to become a much sought after distribution brand,” af-firmed Kumar.

Diversification is also a trigger for the Group’s rapid rise. “Midcom does not believe in keeping all its eggs in one basket. Early on, Midcom diversified into many industrial verti-cals in addition to just retail and distribution,” averred Kumar.

According to Kumar, Midcom also under-stands the importance channel engagement—

healthy relationships with its channel partners and to complement this, Midcom invests a great deal in keeping the channel partners en-gaged and providing opportunities. “Midcom hosts many loyalty programs, as a part of which channel partners are recognised and re-warded for performance when they qualify,” he stated.

Kumar also asserted that the Logistics and Supply Chain is also a strong suit with Mid-com. “Midcom is very strong in its supply chain and logistics network. Rather than rely

completely on third party logistics services providers, Midcom developed a strong in-house infrastructure which we controlled” he declared. This in Kumar’s opinion is what makes Midcom stand out from many of its competitors. Through this well-organised and well-monitored network, Midcom ensures availability of right product at the right place at the right time and the best price.

Kumar is upbeat about Africa and believes Africa is where the heart of Midcom lies. “Midcom started in Africa, has grown in Africa

Conglomerate finds bountiful opportunities in Africa Midcom, an African business and trading conglomerate, is reaping rich rewards thanks to its diversification strategy and early ventures in the continent.

Akash Kumar, group managing director, Midcom


c o V e r s t o r yc o V e r s t o r y

and will continue to serve Africa. The Middle East has also been a significant part of Mid-com’s growth, but it has just helped comple-ment Midcom’s growth in Africa. Midcom is headquartered in Dubai, because Dubai offers a seamless connectivity to all parts of Africa, in addition to offering talent and skilled labour,” he added.

Kumar foresees great potential and promise in Africa, a continent of immense opportunity in his estimation. Specifically, emerging markets such as Ethiopia, Democratic Republic of Con-

go (DRC), Chad, Gabon, Ivory Coast, Burkina Faso, Sierra Leone, to name a few, are good growth markets. All these countries still have very low mobile phone and internet penetration. Kumar also cited the case of Ethiopia with a population of 100 million people, the second most populated country in Africa with a mobile phone penetration of only 30% which implies that a whopping 70 million people are without mobile phones.

Midcom brings in significant local employ-ment in many countries across Africa. Through

the milk processing unit in Uganda and the as-sembly unit for Samsung in Nigeria alone, Mid-com employs more than 700 locals. The total lo-cal employment generated by Midcom Group is more than 1500.

Midcom is now well-entrenched as a Pan-Af-rica Group. The company has a strong presence in the most critical regions in Africa and all ef-forts are in progress for rapid expansion. It has set up manufacturing houses in Uganda and Ni-geria, providing many opportunities and pros-pects of expanding into East, West and Central African countries. “In the near future, over the next five to ten years, Midcom’s presence will in about 35 African countries,” he pointed out.

Challenges also abound and the continent presents a mixed bag. According to Kumar, whilst there are some countries in Africa where government regulations are more relaxed, there are others that are over-regulated. “In some countries the telecom industry has grown rapidly and in others it has stagnated to a cer-tain extent. For instance, in Kenya, where sev-eral major telecom operators and numerous major mobile phone brands are present, the mobile phone penetrations stands at more than 80% which is relatively large for any African nation,” he noted.

“In low-penetration countries, the challenge lies in the further growth of the telecom indus-try. On the other hand new opportunities emerge as people move from feature phones to smart phones, a current phenomenon,” ob-served Kumar.

Then there are other countries like Ethiopia, which has immense opportunities, but strict government regulations make it impossible for any foreign brands to enter the country and of-fer their expertise and growth potential. These countries lack growth in the telecom industry and are at huge risk of a technology malfunc-tion, if preventive steps are not taken at the ear-liest, opined Kumar.

MidcoM groUp of coMpanies

Turnover: $ 1.35 billionEmployees: 2,500+Presence: 21 countries; direct sales presence in 10 and indi-rect sales presence in 11.

The Midcon warehouse

SMARTERSYSTEMS.

SMARTERSOLUTIONS.For more than 70 years’, Dexion has been working with our global partners to turn supply chain processes into sources of competitive advantage.

Dexion provides a seamless integration of the world’s best practice products with state of the art control and management systems that reflect the best in safety, space optimisation, security, and profitability. We seek to understand your business as if it were our own, delivering smarter systems and solutions to optimise the productivity of your business and in-turn your supply chain performance.

To find out how Dexion integration systems can provide your business with smarter supply chain solutions, call +971 (0)4 305 0830 or visit dexion.com.au

عاما , عملت ديكسيون مع شركائنا العالميين لتحويل عمليات التوريد الى مصادر من المميزات التنافسية. 70الكثر من

السالمة , ي مجاالتف االدراية التي تعكس األفضلتوفر ديكسيون اندماجا متكامال ألفضل المنتجات في العالم مع انظمة التحكم الفنية و و نسعى لتقديم انظمة و حلول ذكية ةالخاص مشاريعنا كما لو انها مشاريعكالمساحات , االمن و الربح . نحن نسعى لفهم استغالل

لتحسين انتاجية عملك و بالتالي تحسين عمليات التوريد الخاصة بك.

3050830 4(0) 971+ لمعرفة كيف يمكن لديكسيون ان توفر لعملك انظمة و حلول ذكية , الرجاء االتصال بنا على :

www.dexion.com.auاو زيارة موقعنا االلكتروني :

SMARTERSYSTEMS.

SMARTERSOLUTIONS.For more than 70 years’, Dexion has been working with our global partners to turn supply chain processes into sources of competitive advantage.

Dexion provides a seamless integration of the world’s best practice products with state of the art control and management systems that reflect the best in safety, space optimisation, security, and profitability. We seek to understand your business as if it were our own, delivering smarter systems and solutions to optimise the productivity of your business and in-turn your supply chain performance.

To find out how Dexion integration systems can provide your business with smarter supply chain solutions, call +971 (0)4 305 0830 or visit dexion.com.au

عاما , عملت ديكسيون مع شركائنا العالميين لتحويل عمليات التوريد الى مصادر من المميزات التنافسية. 70الكثر من

السالمة , ي مجاالتف االدراية التي تعكس األفضلتوفر ديكسيون اندماجا متكامال ألفضل المنتجات في العالم مع انظمة التحكم الفنية و و نسعى لتقديم انظمة و حلول ذكية ةالخاص مشاريعنا كما لو انها مشاريعكالمساحات , االمن و الربح . نحن نسعى لفهم استغالل

لتحسين انتاجية عملك و بالتالي تحسين عمليات التوريد الخاصة بك.

3050830 4(0) 971+ لمعرفة كيف يمكن لديكسيون ان توفر لعملك انظمة و حلول ذكية , الرجاء االتصال بنا على :

www.dexion.com.auاو زيارة موقعنا االلكتروني :


Investment in infrastructure and innovation is ensuring the GCC has some of the most robust and efficient supply chains in the world, but as Dr Steyn Heckroodt, dean of MBA and Corporate Training at the Westford School of Management discusses in this expert commentary, the need to ensure flexibility and sustainability amidst increasingly consumer-driven and diversifying markets will be essential.

The iMporTance of fLexibLe sUppLy chains

The world of supply chains has, like most management disciplines, mor-phed quite radically during the past decade or two. There are a number of

reasons for this, including modern-day infra-structure challenges and increased risk; glo-balisation and the impact of technology: e-commerce, e-deliveries and e-documentation. In addition, a shift to ser-vice supply chains as opposed to product fo-cussed supply chains, cost containment pres-sures due to increased competition, customer centricity and the challenge to not ‘draw the line with customers’, and visibility in lure of ever-increasing information man-agement systems’ newness.

As a result, supply chain and logistics managers and leaders in the twenty-first cen-tury must learn to deal with any number of these challenges simultaneously. There is a need to focus specifically on increasingly multi-dimensional operational flows of funds, as well as the information and prod-ucts and services that are demanding the near-constant evolution of supply chain management skills.

In this context, service supply chains have received a lot of attention as global econom-ic shifts have seen mining, agriculture, oil and gas, and construction industries largely been super-ceded by the services industry as the primary contributor to many countries’ GDP growth. To a certain extent this is a sign of economic maturity.

However, as most supply chain research has been dominated by the focus on the op-erational flow and management of products,

g u e s t c o m m e n t

strategy has facilitated for much of the past three decades. In a vibrant and ever-chang-ing business world, this change will be es-sential as organisations are forced to find better ways of dealing with their strategic challenges.

This does not mean that strategy is no longer relevant. In fact it remains pivotal in an organisation’s quest for a competitive and sustainable positioning, but it is supply chain and operations that are vital imple-mentation platforms in determining an or-ganisation’s ability to deliver its value propo-sition to its customers.

Given the issues that are impacting on the performance of the modern organisation’s supply chain, and the fact that the services industry is saturated by IT systems that are

future research into supply chain manage-ment will almost certainly need to undergo a similar shift in order to provide more valua-ble insights into the services supply chain phenomenon and respective growth.

Technology, as an enabler and driver of many of the services supply chain initiatives, is one area where this has been highlighted throughout the sector, and deals with cus-tomer centricity and how to apply technolo-gy and systems to better meet their needs. More and more organisations are also look-ing at flexible supply chain designs in pur-suit of sustainability. Strategy alone is no longer seen as being sufficient as the prima-ry building block for achieving and main-taining the competitive positioning of an or-ganisation as this has been the function that


g u e s t c o m m e n t

dr sTeyn hecKroodT

responsible for most client contact interac-tions, it is becoming increasingly important to design supply chains in a way they can deliver continuous excellence, despite infra-structural and related market challenges.

Think of automated call centres as one example of this.

Supply chains have progressed way be-yond being a part of the logistics of an or-ganisation, and are now embedded in the entire make-up of an organisation’s competi-tive ability. As already alluded to, this neces-sitates creating synergises between the oper-ational flows of funds, information and products and services, and in dealing with the challenges of modern supply chains, the following can be used as a guide on how supply chain design can assist management:

risk: The nature of the modern business en-vironment is constantly changing and while this can produce disruptive innovations, it is also seen as volatile, uncertain, complex, and ambiguous by some organisations.

This sea of constant change is having a sig-nificant impact on supply chain network de-signs which are required to be more flexible and agile. A well-designed supply chain must take into consideration the risks that the busi-ness environment exposes an organisation to, as it is supply chain network designs that are most vulnerable and therefore require designs that will be able to mitigate risk.

globalisation: Advances in technology have helped the world to become one. With each passing year, cross border and cross ocean trading and organisational expansion be-comes easier, but at the same time more complex. This is because globalisation plac-es additional pressures on the need to ex-pand and operate globally.

In turn, supply chain networks are chal-lenged with multi-levelled designs and im-plementation that must cater to and fulfil in-creased expectations when it comes to global market wants and needs. Again, while this is a challenge, there is also an op-portunity to design supply chains capable of responding to a broad range of trends and preferences.

cost: In order to orchestrate the increasing efficiency and effectiveness of supply chains,

organisations invest heavily in systems opti-misation technologies, processes, and other related activities. Invested in the right way, this can offset the increasing pressure supply chains face in both containing costs and in-creasing margins, ensuring a more competi-tive financial business model.

This is why organisations rely on agility within the inventory component of the sup-ply chain design. Enhanced materials re-quirement planning and a matching forecast accuracy from a demand perspective also as-sists in achieving cost advantages for organi-sations that get the supply chain network de-sign right.

customer centricity: The increasing notion that supply chains needs to be designed around very specific and changing customer needs and wants, brings big challenges to supply chain designs. It is no longer the case that organisations can focus on delivery of one or two dominant attributes, but instead they must deliver on more than one or two key differentiators.

Supply chain design thus needs to consider the limitation of resources (people, funding, information, and infrastructure) as they ad-dress the challenge of multi-dimensional con-sumer-driven product and service deliveries.

Visibility: There is no doubt that technology is a key contributor to the visibility of the move-ment of operational flows across a supply chain network. Customers have also become increasingly demanding in terms of being kept up to date on the movement of their products and services. A big influence in this regard is the smart phone ability to keep customers in the loop and is something which must be con-sidered in supply chain designs, specifically re-lating to the operational flow of information.

In conclusion the sustainable competitive-ness of organisations in the GCC, as well as the rest of the world, must shift from a con-ventional approach where strategy dictates the competitiveness of an organisation, to the competitiveness that is being created through much more flexible supply chain architec-tures. In short, supply chain network designs are increasing in strategic value on account of an ability to maintain competitiveness in an otherwise disrupted and volatile business environment.

Dr Steyn Heckroodt is the Dean of MBA and Corporate Training at the Westford School of Management, UAE. He is an international expert on systems thinking and business strategy with a focus on sustainable business competitiveness.

In 2013, he published what has been called one of South Africa’s most influential books on strategy: ‘Strategic Thinking – Game Over’. The book is the result of a seven year research project involving over 120 companies and institutions, in which he challenges the way in which they conduct their business. This was followed by a co-author publication by Oxford University Press in Supply Chain and Logistics in 2015.

He is a regular speaker on topics related to business strategy and supply chain and will take part in upcoming ‘The Big 5’ to be staged at the Dubai World Trade Centre in November 2015.


Mena seT To becoMe a gLobaL LogisTics hUbWith $ 66 billion in revenues in 2013, the MENA Region is all set to become a global logistics hub in the next few years, a recent Al Masah Capital Limited Report on ‘Transportation and

Logistics in MENA’ has revealed.

Shailesh Dash, founder and CEO, Al Masah Capital

The MENA Region is strategically located at the trade crossroads between the West and the East, serving as an ideal trans-shipment hub for international trade and

commerce. Experts believe new permutations and combinations of inter and intra-regional trade will be driven by the emergence of the MENA-Asia trade corridor that will redefine global supply chains.

The transportation and logistics industry in MENA generated approximately $ 66 billion in revenues in 2013 (2.7% of the GDP) of which the GCC accounted for $ 40 billion (2.5% of the GDP) cited the report. As countries in MENA

seek to diversify their economies, significant investments are being made into the development of state-of-the-art infrastructure and logistics facilities. Along with the region’s expanding consumer base, rapid adoption and growth of e-commerce and current vast transportation infrastructure are driving the MENA region’s positioning and potential to become a transportation and logistics hub for the world. “The region has also witnessed a rise in the demand for transshipment services augmented by the overall growth in international trade,” commented Shailesh Dash, founder and CEO, Al Masah Capital, the report’s author.

Infrastructure spending in the region is expected to reach $ 4.3 trillion by 2020 including an ambitious GCC rail network worth $ 128 billion, several light-rail projects worth $ 76 billion across the region’s metros, and port development projects across different markets such as the $ 750 million second terminal at Dammam›s King Abdulaziz Port in Saudi Arabia, Khalifa Port in Abu Dhabi, and Sohar Port and Free Zone in Oman. The region also has developed many free zones such as the Dubai Airport Free Zone Authority (UAE), Tangiers Free Zone (Morocco), Salalah Free Zone (Oman), Aqaba Special Economic Zone


(Jordan), Bahrain Logistics Zone (Bahrain), and Jebel Ali Free Zone Authority (UAE).

“All in all, we find that the significant rise in external and internal merchandise trade activities will spur demand for the rapid evolution of transportation and logistics in the MENA Region. The new trade corridor between MENA and Asia is witnessing steady growth and given the geographic similarities between these regions, many MENA-based logistics companies are seeking to expand into Asian markets and other high-growth countries resulting in brighter future prospects,” Dash added. Another finding after assessing current industry trends is that MENA companies are increasingly seeking contract logistics services to focus on primary activities and simultaneously carry out logistics activities with better expertise and at a lower cost.

In the report, the industry has been categorized into four segments with Transportation being the most important segment, accounting for 40–60% of the total logistics cost, followed by Warehousing (15–20%), Freight Forwarding (10%) and Value-Added Logistics Services (5%). Corroborating the findings of the report by Al Masah Capital, Transportation including road transport, sea and air freight, Warehousing and Freight Forwarding in the MENA Region accounted for 52%, 27% and 21% of the total cost respectively, a Booz & Co research report revealed.

The report has also revealed that despite robust growth prospects, MENA’s transportation and logistics industry faces various challenges. Currently, the transportation and logistics industry is highly fragmented, which leads to inconsistent market regulations, poor service quality, and unskilled manpower, amongst many others issues.

Pitching on a high point on Dubai’s strategic positioning on the world trade map, it has been reckoned that global enterprises considering exports to the MENA region view Dubai as their primary entry point to the market. With well-established, modern port facilities, attractive free trade zones, and a locally headquartered marine terminal operation (one of the largest in the world), the region has much to offer to companies.

Transportation and logistics are known to play key roles in international trade. According to the World Trade Organization (WTO), merchandise exports were worth $ 18.3 trillion in 2013, reflecting a CAGR of 8% over 2005–13. As economies grow closer through trade channels, the value of merchandise trade is expected to witness manifold growth, thereby propelling the demand for the transportation and logistics industry. According to Armstrong & Associates, the supply chain market research and consulting


US firm, the size of the global transportation and logistics industry was about $ 8.6 trillion (around 12 of the global GDP) in 2013. Growth in this sector will likely be driven by developing countries, as they are spending a higher share of their GDP than their developed peers.

The transportation and logistics industry in MENA was valued at $ 66 billion in 2013 (representing 2.7% of the GDP). Of this, the GCC transport and logistics industry was worth $ 40 billion. The share is way lower than other regions across the world. However, it is only bound to increase supported by various growth enablers such as fast-growing consumer segment, robust trade activity, fast-growing non-oil economy, and a determined series of government investments.

MENA lies at the cusp of international trade and commerce between the East and West, an intermediate place in the ladder of comparative advantage. As countries in MENA seek to diversify their economies away from hydrocarbons, significant investments are being made into the development of state-of-the-art infrastructure and logistics facilities. With this, the region has full potential to become a transportation and logistics hub for the world.

MENA’s vast consumer base of approximately 231 million people is a huge market for logistics companies. The population of MENA expanded at a CAGR (compounded annual growth rate) of 1.9% over the last decade, higher than the world average of 1.1% and that of developed nations such as the US (0.8%) and the UK (0.7%). In addition,

e-commerce is gaining ground in the country. Over the last decade, merchandise trade in the

region registered a CAGR of 16% to $ 2 trillion in 2013 from $ 470 billion in 2003. With its vast transportation infrastructure of 136 sea ports and 151 airports, the region serves as a major trading and trans-shipment hub. With more than 19.3 million TEUs of container traffic in 2013, the UAE surpassed countries such as Germany, Italy, the UK, the Netherlands, Spain, and Belgium, which used to handle more traffic at the turn of the century. Other MENA countries registering strong growth in container traffic over 2000–13 include Saudi Arabia (4.5x), Egypt (4.4x), and Oman (3.4x).

Countries in MENA are investing heavily in transportation and logistics infrastructure. The region is expected to outlay $ 4.3 trillion in infrastructure spending by 2020. An ambitious regional rail network worth $ 128 billion, in the form of the GCC rail network, is already under construction. Several light-rail projects worth $ 76 billion for the region’s metropolitan areas are also in the pipeline. Apart from rail, there are numerous ongoing projects related to the development of ports such as the $ 750 million second terminal at Dammam’s King Abdulaziz Port, Saudi Arabia, the development of the Khalifa Port by the Abu Dhabi government, and The Sohar Port and Free Zone in Oman.

MENA’s transportation and logistics industry faces various challenges. Currently, the transportation and logistics industry is highly fragmented, which leads to inconsistent market regulations, poor service quality, and unskilled

“MENA-based logistics companies are seeking

to expand into Asian markets and other high-

growth countries resulting in brighter future prospects.”


manpower, among others. There also exist operational gaps such as inefficient clearance process, clearance/regulatory problems with customs and other government bodies, and high non-tariff-related trading costs.

Despite these challenges, the MENA transportation and logistics industry is evolving at a rapid pace. Logistics companies in MENA are venturing into other regions with high growth potential. Companies in MENA now seek contract logistics services to focus on primary activities and simultaneously carry out logistics activities with better expertise and at a lower cost.

The MENA transportation and logistics industry witnessed significant merger and acquisition activity. During 2010–14, more than 87 such deals were struck. Aramex (UAE), Agility Public Warehousing Co (Kuwait), and DP World (UAE) were the most active companies in the space. Furthermore, the region has nearly 35 transportation and logistics companies listed on various stock exchanges across MENA. The transportation and logistics industry has six publicly listed companies, with market capitalization of more than $ 1 billion. Numerous renowned private companies also operate in the region.

Considering the scale of ambitions, it seems that MENA is focused to become a global logistics hub. Growing international trade and a rising demand for trans-shipment services, fast growing population, and large-scale investment will only drive expansion in the region’s logistics sector.

TransporTaTion and LogisTics indUsTry—an oVerView Transportation and logistics refer to the management of the flow of resources between the point of origin and the point of consumption. The entire process usually involves integration of information flow, material handling, production, packaging, inventory, transportation, and warehousing.

The transportation and logistics industry comprises companies engaged in the transport, storage, and distribution of freight by road, rail, water, and air. For the purpose of this report, the industry has been divided into four segments: transportation, freight forwarding, warehousing, and value-added logistics services (VALS).

• Transportation entails air, road, rail, and marine transport. • Warehousing includes warehousing or storage services during manufacturing and/or distribution.


“According to Armstrong & Associates, the

leading 35-year old supply chain market

research and consulting US firm, the size of the

global transportation and logistics industry was

about $ 8.6 trillion (around 12 of the global

GDP) in 2013.”

• Freight forwarding includes documentation, insurance, and custom clearance.

VaLs consTiTUTe The reMaining share. The cost breakdown is an ideal case for most developed and developing countries. However, the share of these segments can vary depending on the nature of the industry they serve. For instance, FMCG, food processing, pharmaceuticals, and consumer durables may involve higher cost allocation to warehousing compared with other industries, on the back of controlled temperature and storage requirements.

Key issUes and chaLLenges:

fragMenTed indUsTry: The MENA logistics industry is very fragmented with ‘several thousand’ players. Furthermore, given the attractiveness of this market, the number of new players entering this space is increasing. According to Frost & Sullivan, in the UAE alone, there are about 4,700 players in the logistics industry, of which roughly 500 companies are MNCs and organised companies. The remaining 4,200 or so companies are unorganised and operate in segments such as FMCG and consumer sectors.

A fragmented structure has led to challenges in terms of inconsistent market regulations, quality of services offered, skilled manpower, and unsophisticated management techniques.

operaTionaL gaps beTween iMporTanT Trade-Lanes: The logistics industry in the GCC has been on

a sound growth track, backed by consistent consumer behavior and high leverage on the natural resources within the region. However, several factors pose a challenge to the prospects of logistical oneness within the region. These challenges include an inefficient clearance process, poor quality of trade- and transport-related infrastructure, competence and quality of logistics services, ability to track and trace consignments, and frequency of shipments reaching the consignee within the scheduled delivery time.

The factors mentioned above have affected the flow of goods and trade between GCC countries. For instance, companies spend 30 to 45 working days each year on resolving clearance/regulatory problems with customs and other government bodies. Such instances delay the process and push up costs. The non-tariff related trading costs; red tape, corruption, and bureaucracy; can sometimes reach 9% of the value of goods shipped.


inconsisTenT qUaLiTy of road neTworK in Mena: Good road and rail network, which plays a crucial role in the movement of goods within a country, is a precursor to the overall well-being of an economy. However, MENA scores low on this front. MENA’s road density of 8.9 per 100 sqkm. is well below the world average of 32.6 per 100 sqkm. Barring Bahrain, Qatar, Lebanon and Kuwait; all other MENA countries have road densities below 20 per 100 sqkm. The quality of roads is poor in Libya, Lebanon, Egypt and Algeria.

UncLear goVernMenT regULaTions According to the World Bank, the institutions in charge of transport and logistics in MENA have weak policy formulation and management capacity. There are a number of regulatory/government/semi-government bodies such as the Roads and Transport Authority (RTA), JAFZA, DAFZA, and Dubai Maritime City

Authority in the region. Each agency is individually trying to regulate and develop the industry, rather than adopting a coordinated approach. The land use planning rigidities and property rights imposed by the government is also a major constraint.

Agility, in its Emerging Markets Logistics Index for 2014, cited government-related issues and unrest in the MENA region as the top two supply chain risks. Political instability is estimated to be responsible for 35% of all supply chain-related problems, followed by civil unrest.

Mena LogisTics coMpanies expanding To oTher regions: Trade between MENA and Asia is gaining momentum. Given the geographic similarities between these regions, many MENA-based logistics companies are seeking to expand into Asian markets and other high-growth countries.

UAE-based Aramex announced plans to expand operations in Southeast Asia by

aL Masah capiTaL

popULaTion

infrasTrUcTUre spending in The region:

Al Masah Capital is one of the fastest growing alternative asset management firms in the MENA and SEA regions. Established in 2010 and headquartered in Dubai, UAE, Al Masah Capital provides tailor investment solutions to its clientele, from private equity across healthcare, education, food and beverages, logistics and other consumer driven sectors, asset management, corporate and real estate advisory as well as public market research services.

The population of MENA expanded at a CAGR (compounded annual growth rate) of 1.9% over the last decade, higher than the world average of 1.1% and that of developed nations such as the US (0.8%) and the UK (0.7%).

• Expected to reach $ 4.3 trillion by 2020• Ambitious GCC rail network worth

$128billion, • Several light-rail projects worth $ 76

billion across the region’s metros• Port development projects across

different markets

partnering with Thailand-based Leo Global Logistics, a logistics service provider. According to the deal, Aramex Thailand would expand the company’s owned operations in Singapore, Malaysia, Indonesia, Hong Kong, China and Australia to help facilitate cross-border region would expand 33% by 2017, or 7.5% a year on average, as increased competition and cost pressures prompt companies to focus on core competencies. Furthermore, land in the region is relatively scarce, expensive to develop, and subject to a complex web of zoning requirements, which would further contribute to the growth of logistics in the region.



faciLiTaTing faciLiTies ManageMenTWith more than 4,500 professionally qualified and experienced Facilities Management (FM) specialists and a 24/7 customer response centre with highly trained multilingual agents, multi-award winning and quality management-certified Imdaad offers an exhaustive range of hard and soft FM services in the UAE, Qatar and soon in Saudi Arabia and Oman.

profiLe: JaMaL abdULLa LooTah

Jamal Abdulla Lootah is presently the CEO of Imdaad, the integrated facilities management service provider. He was appointed to this position in 2007. As CEO, he is leading the FM service provider’s ambitious expansion drive with particular emphasis on green initiatives.

Starting his career with the Security Department of Dubai Port Authority, Lootah has been with Dubai World since 1991. His excellent leadership skills and foresights enabled him to make steady progress in his career, and in 2005, Lootah became director of human resources and general administration at Dubai World.

Lootah, who is also the president of the Middle East Facilities Management Association (MEFMA), has completed the Corporate Advance Program at IMD, the leading global business school based in Lausanne, Switzerland, after graduating in Business Administration from the University of London. He had been an active participant in Dubai Leaders Program, the internationally recognised leadership development initiative launched by Dubai World in association with Wharton Business School of University of Pennsylvania.

f A c i L i t i e s m A n A g e m e n t


imdaad isn’t just the Arabic word for help or assistance, it is first dedicated and fully in-tegrated Facilities Management (FM) com-pany in the UAE with stated corporate

goals to deliver cost-efficient services that cre-ate value for its customers.

Imdaad started off in 1986 as a civil engi-neering division of Dubai’s Ports, Customs and Freezone Corporation (PCFC), initially handling civil engineering works, air-condi-tioning and electrical maintenance. Three years after its establishment, it decided to offer waste and environmental management, pest control and sewage treatment services before eventually providing outsourced FM services to various clients. The outsourced FM services were made possible via a joint venture it em-

barked on in 2002. In 2007, Imdaad officially became an independent business unit deliver-ing integrated FM solutions.

Imdaad has since evolved over the years and become the recipient of many accolades, in-cluding the ‘Overall GCC FM Company of the Year’ from FM Awards and the Dubai Quality Appreciation Program–Corporate Category, as a result of its dedication to pro-vide quality-driven and sustainable FM solu-tions. Furthermore, the company attained ISO 9001:2000, ISO 14001:2004 and BS OSHAS 18001:2007 quality management certifications.

“To date, we offer an extensive range of hard and soft services such as waste manage-ment, pest control, recycling, infrastructure cleaning, and health and safety, to name a few,

across the UAE, Qatar, and soon in Saudi Arabia and Oman. Our roster of clients in-cludes large corporations and institutions from the oil and gas, banking and finance, health-care, hospitality, education, industrial, real es-tate, and government sectors,” explains Jamal Abdulla Lootah, chief executive officer, Im-daad, in an exclusive interview with Logistics News Middle East.

While FM to some business may be a cost burden, Imdaad is using its position in the in-dustry to innovate, through first in its field de-velopments such as garbage collection trucks that run on biofuel.

“We attribute our success to our unwaver-ing commitment to make a difference in the industry by introducing groundbreaking solu-

aT a gLance: iMdaad’s serVices

The company offers a vast array of FM services, both hard and soft, to an expanding clientele. Some of Imdaad’s hard services include mechanical, electrical and plumbing (MEP) and asset maintenance; building management systems (BMS) operations; painting, civil, carpentry, masonry; infrastructure maintenance, power monitoring and savings.

Some of Imdaad’s soft FM services include waste management (medical waste collection and disposal and confidential data destruction services); pest management; cleaning services; lagoon and beach cleaning; tanker and sewage treatment plant services; business support; temporary power rentals; recycling management; training; defect liability period (DLP) management; project management; help desk concierge and camp management and catering.



we are also aiming to establish a strong foot-hold in Oman and Saudi Arabia by taking part in several key projects in these two big mar-kets. We have already identified key expansion strategies for the regional market and we plan to implement some of them before the year ends,” he avows.

Imdaad already has a reputation for adopt-ing and implementing best technologies and solutions practices. According to Lootah, Im-daad will continue to focus on delivering smart and sustainable solutions to benefit the end-users, facility owners and the environment will help further streamline our business and at the same time, contribute to the GCC’s ef-forts to promote environmental sustainability.

“For example, we plan to build an advanced material recovery facility for recycling dry household items. The facility will be designed to receive, separate and prepare recyclable ma-terials for marketing to end-user manufactur-ers. Similarly, we are also aiming to build a polished water plant to produce recycled water for district cooling. Once completed, the plant will help lessen the need for additional potable water facilities, reduce the amount of treated wastewater discharged into the ocean, mini-mise our reliance on costly imported water supplies, and increase our water supply relia-bility,” emphasises Lootah.

Lootah also confirmed that Imdaad will soon start a training centre for facilities man-agement professionals as well. The centre will help improve the skills and knowledge of the

company’s facilities managers which will be helpful especially when facing new challenges.

Lootah remains optimistic and confident for the rest of the year given the growing demand in the regional market. “To maintain our mar-ket position, our specialists will continuously enhance our services to ensure that we meas-ure up to international standards. Imdaad will also seek more regional business opportunities to help us attain our growth objectives. Inter-nally, we will continuously develop a solid work environment that encourages and values new ideas, contributions, initiatives and crea-tivity; respects individuals; and rewards achievements and hard work. Additionally, we will remain committed to our sustainable de-velopment efforts,” stresses Lootah.

Lootah also articulated the ‘smart’ and ‘sus-tainable’ solutions being offered by Imdaad and its impact on the company’s profitability and industry standing. “Our ‘smart’ solutions are our contributions to Dubai Government’s ‘Smart City’ vision. This is evident in our deci-sion to fuse modern technologies into our ser-vices – a move that has afforded us several benefits such as lower operating costs and more efficient use of resources and assets,” re-marks Lootah.

As an example Lootah cited the FleetMAN GPS tracking software which enables Imdaad to monitor its vehicles using GPS tracking equipment. Incorporating the software into its operations has prevented unauthorised use of vehicles and unnecessary consumption of fuel.


iMdaad’s csr agenda

Imdaad has always taken up worthwhile causes that benefit society’s growth and development. Delivering services with high standards of honesty, integrity, transparency and professionalism demonstrates Imdaad’s commitment to its Corporate Social Responsibility (CSR) initiatives.

Aside from Beati, our other CSR programs include participations in Dubai Municipality’s ‘Clean-up the World Campaign,’ Jebel Ali Free Zone Authority’s ‘Annual Tree Planting Ceremony’ and ‘Can Collection Drive,’ DP World’s coastal clean-up activity, and Atlantis the Palm’s ‘World Oceans Day.’

Imdaad has also lent support to various blood donation campaigns, the ‘Tarahum Charity’ initiative, and concerted efforts to give aid to Nepal’s earthquake victims. Imdaad also provides help to non-government organizations (NGOs) such as the Dubai Autism Center.

tions. Using advanced technologies to exceed the expectations of our clients is a reflection of this commitment. Another is our sustaina-ble and green services in line with our bid to minimise our carbon footprint,” affirms Lootah.

Imdaad is also the first organisation to have trained staff for Green Building FM services and has a flagship CSR programme, Be’ati, or ‘my environment’- to raise school children’s awareness on many related issues. The pro-gramme is anchored in the firm’s belief that youth education and empowerment are funda-mental to today’s worldwide efforts towards environmental sustainability.

Imdaad is also embarking upon ambitious plans to expand outside of its base in the UAE and into the wider GCC confirmed Lootah. “Aside from our Qatar and UAE operations,


gcc fM MarKeT: iMdaad in The driVing seaT

The GCC FM market is on an upward trajectory, with the construction sector giving local, regional and international facilities managers numerous lucrative opportunities for growth and development.

The global FM market is estimated to touch $ 394 billion by 2017. The GCC’s current construction sector estimated at $ 172 billion construction sector is set to drive the region’s robust FM industry to grow at a compound annual growth rate of 4.1% to $ 892 billion in the next 25 years. Saudi Arabia’s FM market, in particular, is valued at over $ 20 billion, with a growth rate pegged at 10 % per annum. If this trend continues, it is expected to become the region’s biggest market. As for the UAE, the market value is projected to reach $ 5.4 billion this 2015.

The industry is also witnessing introductions of several integrated FM solutions in the local sector today to satisfy the growing customer demand for informative, transparent and ultra-modern services.

Imdaad has announced that growing awareness among consumers about the benefits of facilities management (FM) along with governments’ interest in sustainable initiatives have accelerated the global FM sector. The realisation that management and maintenance – including for energy – accounts for up to 80 % of total building cost while development takes up just 20 % has been the major

driver for the sector’s unprecedented growth.

Imdaad is continuously transforming in order to capitalize on these many opportunities in the GCC market and is also seeking to significantly contribute to the regional sector’s further development.

Jamal Abdulla Lootah, CEO, Imdaad, commented: “The world has finally realised the true potential of the FM industry in creating an optimal, safe, healthy and ‘green’ environment which benefits occupants and facility owners alike. A proper implementation of FM plans can result in increasing a building’s lifecycle and performance, reducing operational cost, increasing revenue, and saving considerable time and efforts.

While Europe and the US are mature FM markets, the concept is still in the nascent stages in the GCC. However, the outlook for the region’s FM industry is bullish due to the regional governments’ emphasis on ‘smart’ and sustainable solutions; growth in construction of high-rises and vast mixed-used developments, all of which require specialised FM services; and the growing consumer awareness. Imdaad is looking to play a major role in the growth of the region’s FM industry by introducing breakthrough technologies and innovative concepts such as material recovery facility and polished water plant.


It also keeps company officials updated on maintenance and repair, thus lowering the risk of accidents and operating costs.

Another smart solution Imdaad has de-ployed is the Systems, Applications and Prod-ucts (SAP)-based Mobile Work Force Manage-ment Solution. For this system, Imdaad uses mobile devices to improve the efficiency and communication channels of its field workers. It has twin advantages in as much as it increas-es efficiency and reduces both costs and time by shortening the work cycle, while ensuring the wellbeing of its employees through its complete safety check features Lootah clarified.

Additionally, Imdaad has deployed the smart waste management solution to optimise the process of garbage collection. By placing intelligent sensors in its smart bins, it is able to schedule trips through the shortest route and as needed only instead of on a daily basis. These result in reduced fuel consumption and maximum utilization of human and other resources.

Imdaad’s other sustainable programs in-clude the Be’ati School Programme, which aims to inculcate the importance of a sustain-able environment in school children, and the ‘Go Green’ initiative, which focuses on build-ing sustainable communities. The company will also explore the possibilities of setting up waste recycling plants across the UAE.

The FM industry evolving in the region and Imdaad is bracing for the challenges ahead. Smart and sustainable FM solutions are fast becoming the key trends in the regional mar-ket as a result of the increasing demand for an optimal, safe, healthy and ‘green’ environ-ment. Additionally, GCC governments are fo-cusing more on promoting smart and sustaina-ble solutions. “In order to respond to the demand, the FM market is quickly evolving. Given the benefits of these solutions, Imdaad aims to continuously play a major role by in-troducing breakthrough technologies and con-cepts that will help further boost various inno-vations,” adds Lootah.

So what new technologies and equipment will Imdaad be investing in as it forges ahead? “We will remain committed to deploying the most modern ‘green’ technologies in accord-ance with our philosophy of ‘Reduce, Reuse, Recycle.’ As I have mentioned earlier, we have already made substantial investments in line with this and we will continue to do so in the coming years. We will also consistently ex-plore new and innovative ways to collect and process all types of recyclable materials and

introduce schemes to promote recycling among our customers,” responds Lootah.

Lootah also outlined his vision for Im-daad’s future. “Looking forward, we aim to become a market leader in GCC in the provi-sion of professional facilities and waste man-agement solutions and services. We can achieve this by continuously offering high-

quality facilities and waste management solu-tions aided by the most advanced technolo-gies,” he reflects.

“We will continue to operate at the highest international standards, while seeking for more creative ways to innovate and raise the bar in the regional FM industry,” he concludes.


eros groUp enTers UnVeiLs new onLine shopping porTaL

Not to be left behind, the Eros Group has announced the launch of its new e-commerce website allowing ease of logistics and convenience for shoppers

to purchase online via its retail portal

Deepak Babani, CEO, Eros Group (centre) flanked by Niranjan Gidwani, deputy CEO (left) and Rajiv Misra, assistant vice president (right)

The 48-year old Eros Group, the sole distrib-utor of world-renowned brands including Samsung, Hitachi, TCL and Linksys in the UAE, has entered the e-commerce are-

na with the launch of a new online shopping web-site allowing easy access, convenience and logis-tics to customers to purchase everything from mobile phone accessories to home theatre systems and washing machines online for the first time.

The new website, www.erosdigitalhome.ae, of-fers a range of products including home entertain-ment, mobiles, tablets, appliances, computers and accessories. It also features a deals section where customers can find the latest promotions, new ar-rivals and discounted items.

The site, which has now been operational for over a month features over a 1,000 products and the site allows for both payment by card or cash on delivery to any resident across the GCC. The Eros Group provides offers a host of incentives and options from free product insurance, free shipping, easy returns, collection for any of their existing 33 retail points in the UAE and install-

ments on all purchases made through the website. As an introductory offer, customers will receive AED 50 off their first purchase of over AED 200.

Deepak Babani, CEO, Eros Group, addressing the press conference to announce the launch com-mented: “E-commerce is rapidly expanding in the region due to the increased confidence in online sales and we expect to see this strengthen over the next decade. Consumers want simplicity and con-venience and our presence in the e-commerce are-na brings with it the same credibility and superior service that is provided by Eros Group offline.”

Babani also hinted the possibility of new syner-gies widening the current portfolio of offerings with the introduction of watches and selective luxury products and related accessories.

Niranjan Gidwani, deputy CEO, Eros Group, also present at the head-table remarked, “With the increasing growth in internet penetration and more and more users going online to shop, we feel that now is the perfect time for us to take the digital leap. The online opportunity for Eros Group has huge potential and we are excited with

the opportunity and have some exciting online retailing offers.”

According to a recent Frost & Sullivan report, e-commerce payments in the GCC and the wider MENA are growing faster than anywhere else in the world. Worldwide e-commerce sales are ex-pected to reach $ 1.7 trillion by end of 2015. In the United Arab Emirates, the largest e-commerce market in the Middle East, e-commerce is worth about $2.5 billion a year, and is expected to grow to $ 10 billion by 2018, the report added.

Babani revealed that he expects sales from the site to touch $ 6.8 million in 2016 and leap to $ 27.25 million by 2018. With a dynamic young population and one of the highest global per capi-ta internet penetration levels, the online spending potential in the UAE is quickly emerging as one of the highest in the world. “The launch of our e-commerce venture is a key component of our growth strategy and a natural progression towards delivering growth and trusted service to our bur-geoning consumer base across the UAE,” Babani added.


Babani also expects sales to grow 10% this year and by 20% next year propelled by new business-es such as LED lighting and mobile phones. He admitted that footfall in the Group’s UAE retail stores was fairly plateaued due to decline in spending of tourists mainly from Russia and Eu-rope owing to the weak rouble and euro. He also rued the the fall in tourist numbers from Egypt and from Syria and Libya owing to the political situations in these countries.

Speaking to Logistics News Middle East on the sidelines of the press conference, Rajiv Misra, as-sistant vice president, Eros Group, was upbeat and excited about success of the newly launched web portal. “I am excited about the enhanced sales prospects for the new e-commerce platform. We did not jump on to this bandwagon just to copycat our competitors but it was a measured de-cision reached after careful consideration and analysis following prolonged discussions with our technology partners and service providers. This new avenue will not only complement our current omni-channel options but will make it convenient and easy for our customers to access our wide range of products. As the site becomes more pop-ular we hope to fare even better in the future,” he stated.

He further indicated that the Group will con-tinually monitor sales, feedback and customer-preferences and accordingly add new and popular items to this available on-line portfolio.

ISO 9001:2000 accredited Eros Group’s cur-rent revenues exceed $ 1.24 billion and the com-pany boasts 6 service centres across UAE, 15 world-class brands in its portfolio, and industry recognised awards. Eros Group, which will com-memorate its 50th year in the |UAE in 2015, is one of the leading players in consumer electron-ics, telecoms and allied multi-products in the Middle East.

e - t A i L i n g

“The launch of our e-commerce venture is a

key component of our growth strategy and a natural progression towards delivering growth and trusted

service to our burgeoning consumer base across the UAE,”


The recently concluded Materials Handling Middle East 2015 in Dubai reported double-digit growth in both visitors and exhibition space firmly reinforcing its position as the must-attend trade show for the regional logistics, warehousing, supply chain management, freight and cargo industries.

MhMe 2015 ceMenTs iTs priMacy wiTh sUrge in exhibiTors and VisiTors

The diversity, quality, and innovation of products on show was evident at the 8th edition, three-day biennial Materials Handling Middle East 2015

Exhibition as the world’s leading and well-known manufacturers showcased their latest wares—from Swisslog’s popular AutoStore automated storage and order picking system to Korean manufacturer Doosan’s latest range of electric forklifts and heavy duty diesel forklifts.

Materials Handling Middle East 2015 held at the Dubai International Convention and Exhibition Centre from 14 to 16 Sep-tember provided a clear snapshot of the Gulf economy’s inherent strength, where di-verse industries such as oil and gas, automo-tive, manufacturing and retail are the driving force of region’s materials handling sector.

Speaking exclusively to Logistics News Mid-dle East on the side-lines of the exhibition, Ahmed Pauwels, CEO, Messe Frankfurt, the show organisers was upbeat about the in-crease in exhibitor participation. “We are gratified at the 15% increase in exhibitor numbers given that the average growth rate of intralogistics equipment segment is only around 4% by industry estimates,” asserted Pauwels. “There is also emphasis on equip-ment cost and performance efficiency, opti-mum use of storage space, the harnessing of solar power as well and highlighting ecology and environmental concerns,” he added.

Pauwels attributed the growth in exhibitor numbers to increased infrastructural spend-ing on mega projects such as DWC and Eti-had Rail in the UAE as also in Saudi Arabia and the remainder of the GCC nations. “The Expo 2020 is also a significant factor in attracting logistics services and equip-

e V e n t r e V i e w

the GCC and the Middle East, the African continent and the CIS countries is also piv-otal in attracting new exhibitors to this show,” he affirmed.

Pauwels also observed that the vast range of solutions on offer, from automated stor-age and picking solutions, to pallets, rack-ing, cranes, and packaging equipment also contributed to the extraordinary interest in Materials Handling ME 2015.

ment manufacturing companies for Materi-als Handling Middle East 2015,” he ac-knowledged.

Pauwels also credited the surge in the ex-hibition interest to the expected trade poten-tial and the proposed lifting of UN-spon-sored sanctions against Iran following the country’s nuclear pact between the P5 coun-tries and the European Union. “In addition, the proximity of the Indian subcontinent,


e V e n t r e V i e w

MaTeriaLs handLing MiddLe easT 2015

More than 250 brands were on show, in-cluding six of the world’s top 20 materials handling systems suppliers. Daifuku from Japan, currently the world’s largest supplier, showcased its Automated Storage and Re-trieval System (ASRS), commonly used by automotive and retail giants such as IKEA, Nike, and Toyota.

Andrey Kras, account manager at Daifuku’s International Business Depart-ment, said the company is looking to estab-lish an office in the Middle East to cater to growing interest in the region for its auto-mated warehousing solutions.

“Prior to 2014 we would receive maybe one or two enquiries per year from the Mid-dle East, and this maybe grew to between seven to ten inquires last year,” said Kras. “In 2015, we’ve had 20 so far, so the growth is huge, and these are high value leads.

In addition to global players such as Ger-many’s SSI Schäfer, Karcher, and Kardex Remstar, Twintec, the specialist flooring contractor from the UK, Materials Handling Middle East 2015 also had strong represen-tation from UAE-based distributors includ-ing Kanoo Group, Al Futtaim Motors, Gen-eral Navigation and Commerce Company (GENAVCO), SPAN Trading, Al Futtaim Auto & Machinery Company (FAMCO), and Acme Industrial Hardware.

Multi Mech Heavy Equipment used the annual showpiece event to promote its distri-bution partnership with Doosan Materials Handling in the UAE, extending their exist-ing agreement in the other GCC markets of Oman, Kuwait, Bahrain, and Qatar.

Sreekumar S. Panicker, head of sales—Di-rect Target Groups, Karcher FZE, UAE speaking exclusively to Logistics News Mid-dle East was upbeat about his company’s de-but participation in Materials Handling ME 2015. “As a progressive business entity, we are keen to explore new avenues for growth and increased sales revenues. The expanding and blossoming logistics sector is an un-tapped segment where our cleaning equip-ment can potentially be sold and which holds considerable promise for a reputed in-ternational brand as Karcher. So we decided to make our foray at this exhibition to con-nect with companies that we can do business with in the future,” explained an enthused Panicker.

Rajesh Gopinath, chairperson of Multi Mech Heavy Equipment, commented: “In one month we will be the exclusive distribu-tor in the UAE for Doosan and we’re target-ing logistics companies, shipping, and alu-

minium smelters here in the UAE. We have other materials handling equipment in our portfolio but this year we only wanted to fo-cus on our new partnership with Doosan.”

GENAVCO, the UAE distributor for ma-jor forklift brands such as Crown, JLG, Wei-ro, and Flexi, was a regular exhibitor pleased with the outcome of Materials Han-dling Middle East 2015. Issam Abu Naba’h, president of GENAVCO, said the show wasn’t just about meeting clients and selling products. “With so much to offer in the mar-ket, it’s important for clients to have the right solutions; they have the right to the best services with the highest quality safety standards at a reasonable price,” stated Naba’h.

These sentiments were shared by Rene Wenger, core facilities and ICT Manager at Dubai-based Masaood John Brown (MJB) Gas Turbine Services, one of the world’s largest providers of industrial turbine main-tenance solutions. Wenger was visiting Ma-terials Handling Middle East 2015 to source warehousing equipment for MJB’s planned 30,000sqm Dubai South facility that will be operational by 2017.

With 30 UAE-based companies and more than 30 exhibitors making their debuts, Ma-terials Handling Middle East 2015 was the most comprehensive and representative in its 14-year history.

A brand new feature this year was the ‘Forklift Operator of the Year’, a unique competition where 77 contestants from throughout the UAE went head to head to be crowned the country’s most skilled, saf-est, and efficient forklift operator.

George Kumi, of auto parts supplier Die-sel Technic came out on top after a day of navigating three tonnes of electric forklift machinery through narrow spaces replicat-ing a tight warehouse environment. Moham-med Aaga from courier company Aramex, came in second, while Imran Khan from lo-gistics provider Baqer Mohebi Enterprises, was third.

Returning features at Materials Handling Middle East was the popular Demo Area, where exhibitors are showcased the unique capabilities of some of the world’s most trusted forklift brands, such as Toyota, Ray-mond, Jungheinrich, and Hyster; while the two-day Warehousing and Materials Han-dling Conference put a spotlight on the emerging trends and their impact on the re-gional materials handling industry. The 9th edition of Materials Handling Middle East will return to Dubai in 2017.

Gulf’s materials handling equipment market will be worth

$5 bnby 2020, up from $3.8 billion in

2014

129 exhibitors from 21 countries Attracted

4,386

trade visitors from 55 countries, 30% more than its previous

2103 edition

30 UAE-based companies and more than 30 exhibitors making

their debuts

Covered

15%

more space than the previous 2013 edition


The fUTUre wiThoUT cheap fUeL

Petrol up, diesel down: but what do the latest developments in fuel prices mean for the UAE transportation sector? What effects will this have for the logistics and construction sectors? How will it impact growth? Shailesh Dash, founder

and CEO, Al Masah Capital explains the implications.

in a pragmatic move aimed at strengthening fiscal position and reducing domestic oil consumption, the UAE government announced the deregulation of transport fuel prices from 1 August 2015. With

GCC economies steadily embracing market oriented reforms, the surprise move by the UAE has made it the first nation in the GCC to completely abolish fuel subsidies and join the league of other key emerging economies such as India, Indonesia, Mexi-co and Egypt that have deregulated fuel prices in the recent past. Although, the domestic fuel prices will still be set by the government on a monthly basis, they will be linked to global market prices. Conse-quently, the diesel prices declined by 24% while pet-rol prices increased by approximately 29% in the month of August.

From a macroeconomic perspective, oil has been a major contributor to government revenues, account-ing for nearly two-thirds of the total fiscal revenues in the UAE. Therefore, reducing subsidies on fuel should benefit the state budget directly, helping to offset the receding oil revenues and possibly freeing up resourc-es for spending elsewhere, such as on infrastructure. According to a recent report by International Mone-tary Fund (IMF), the UAE would have spent more than AED 46 billion on fuel subsidies in 2015 (not taking into account the recently announced changes),

more than 10% of the total budget.Deregulation of fuel prices will also have a posi-

tive impact on the domestic economy as cheaper diesel prices would help lower operating costs across industries while boosting the transportation and logistics sectors, which are key drivers of the UAE’s overall economic growth. According to Frost & Sullivan, the UAE’s logistics industry, val-ued at $ 23.4 billion (6% of the country’s GDP) in 2013, is expected to grow to $ 27 billion in 2015 due to a surge in trade volumes and upward trend in local manufacturing.

The transportation sector, which accounts for nearly 18% of total logistics revenues, would be the primary benefactor of declined diesel prices. While the transport operators (on back of higher margins) will focus on streamlining operations around de-mand rather than fuel savings, manufacturing sector and other supply chain companies with large diesel fleets may look to expand their fleet size for higher operating efficiency and market penetration.

Moreover, as logistics and manufacturing compa-nies realign their transportation strategy going for-ward, a part of the operating benefits might also be transferred to the consumer in the mid to long term, thereby boosting overall domestic spending.

Another key benefactor of reduced diesel prices


will be the country’s construction sector, which largely relies on heavy trucks for trans-portation of material. According to Zawya Projects, the total value of on-going construc-tion projects, planned or underway currently, in the UAE is estimated at $ 62.2 billion (around 15% of the country’s GDP).

Fuel can constitute up to 40% of a project’s total cost and therefore, a decline in diesel prices will directly impact the profitability of construction firms. Moreover, with easing budgetary pressures, the government is also likely to instigate new infrastructure projects which will be beneficial for the sector in the long term.

Following the deregulation directive, the petrol prices in the UAE soared to unprece-dented levels. Although the impact of this price hike is expected to be marginal on pub-lic pockets as the fuel costs account for only 3%-4% of the average income, it will cer-tainly encourage the use of public transpor-tation system, especially for the low income group.

There exist a large disparity between public transportation usage pattern across emirates (for instance, public transportation account for only 4% of total passenger trips in Abu Dhabi, which is significantly lower than the penetration in Dubai), which needs to be tac-tically addressed in the near future. The gov-ernment will also be looking to develop an ef-ficient, inter-state public transportation system, connecting the major emirates - Dubai, Sharjah and Abu Dhabi.

In addition to the economic advantages, the deregulation of fuel prices is also aimed at tackling environmental concerns and con-serving country’s natural resources for the future. Over the last decade, the economic boom in the GCC coupled with subsidized fuel prices, has led to dramatic rise in oil consumption across the region. Domestic oil consumption in the UAE during 2004-14, outpaced the consumption growth in faster growing countries such as India and China.

The UAE along with most GCC countries is ranked among the leading per capita car-bon emitters globally. Accordingly to the World Resource Institute and CAIT, the carbon emissions per capita in the UAE was almost double than that in the G7 nations in 2012. With the transportation sector ac-counting for nearly 22% of the greenhouse emissions in the UAE, the government is hopeful that the removal of fuel subsidy will reduce the country’s carbon footprint by in-creased adoption of fuel-efficient vehicles (electric and hybrid cars) and

f u e L p r i c e s

public transportation system.Apart from the core sectors, the deregula-

tion of fuel prices will also impact the auto-motive industry in the UAE. While logistics and manufacturing companies will look to expand their fleet size to derive operational efficiencies, thereby increasing demand for commercial vehicles, the increase in petrol prices may encourage consumers to adopt fu-el-efficient vehicles such as electric and hy-brid cars, thus boosting sales in this segment.

In conclusion, the IMF and other regional observers have long been advocating fuel subsidy reduction so as to safeguard medi-um to long-term sustainability of public fi-

nances and support economic diversification in the region. However, the complete dereg-ulation of fuel prices in the UAE could set a precedent, and could possibly prompt other GCC governments to follow.

From the UAE’s perspective, deregulation of fuel prices will have a dual effect. On one hand, it will increase the fuel (petrol) prices without attracting significant public resent-ment due to controlled inflation while on the other, it will boost core economic sectors and provide additional revenues to the gov-ernment that can be utilised elsewhere for social service expenditure and infrastructure projects.

fUeL price sTaTisTics

Uae consTrUcTion spend per secTor (as aT aUgUsT 2015)

Uae LogisTics indUsTry (2013 MarKeT size: Usd 23.4 biLLion)

Uae MoTor peTroL consUMpTion (2005-12)

new fUeL prices in The Uae (effecTiVe 1 aUgUsT 2015)

0

20

40

60

80

100

120

2005

Freight Forwarding

Petrol Old price New price Percentage change

Unleaded Petrol 98 Super 1.83 2.25 23%

Unleaded Petrol 95 Special 1.72 2.14 24%

Petrol E-Plus 91 1.61 2.07 29%

Diesel 2.90 2.05 29%

Real Estate

Infrastructure

Power & Water - 2.7%Industry - 1.5% Oil & Gas - 0.6%

Others - 0.3%

6277.5

17.5

18

16

% %Transportation

Sources: Gulf News; Global Petrol Prices; EIA; The World Bank; Zawya Projects;

Warehousing

VALS - 4%

120100806040200

2006

2007

2008

2009

2010

2011

2012


Qatar is moving ahead with more than $ 40 billion worth of planned transport projects, it was announced at the recently concluded 4th annual Qatar Transport Forum in Doha.

i n f r A s t r u c t u r e i n V e s t m e n t - Q A t A r

The expansions of Hamad Internation-al Airport (HIA) and Hamad Port, the construction of the Doha Metro

and long-distance passenger and freight net-work, and the ongoing expressway pro-gramme are just some of the current projects in Qatar which are contributing to a total project value of more than $40bn.

One of the highlights of the Qatar Trans-port Forum, which was held under the pa-tronage of HE Sheikh Abdullah bin Nasser Al Thani, Prime Minister and Minister of Interior, was the public unveiling of plans for the estimated $ 8 billion expansion of Hamad International Airport (HIA). NDIA (New Doha International Airport) Steering Committee Project Director Peter Daley, outlined the procurement timeline along with descriptions of the project scope, which includes an expansion of the main terminal building and concourses D and E.

Also revealed for the first time were plans for two additional container terminals at Hamad Port that would increase the $ 7.3 billion project’s handling capacity to 6 mil-

Qatar’s roadmap for $40 bn of transport projects

lion TEUs by 2020. The first phase of the megaproject, which involved installing more pre-cast blocks than the pyramids, is due to open at the end of 2016, Tim Verdon, direc-tor, Aecom, the leading provider of architec-ture expertise, told the Forum’s attendees.

Qatar Rail’s chief of service delivery An-drew Tailor updated the Forum on Qatar’s $ 20 billion+ integrated transport plan. A world record 21 tunnel boring machines are being used on the Doha Metro project, which so far has completed almost 50 km of tunnels. A total of 26,000 workers are work-ing on the project, equating to more than 78 million man-hours worked as of end of August 2015.

Work on the Lusail tram scheme is even more advanced, with four of the five at grade stations completed, while the tender for the first phase design and build of the long-distance freight and rail network will be issued to contractors early next year.

On the roads side, Eng. Nasser Al-Ku-wari, manager of highway projects depart-ment at Ashghal, Qatar’s Public Works Au-

thority, presented an overview of the $ 10.8 billion expressway programme. The massive project, which involves 1,000km of new or upgraded roads, 240 major interchanges and 360 bridges, has already seen 43 major con-tracts awarded. A total of 15 contracts are either in the market or are being prepared, while a further 23 are in the planning stage.

It was also revealed that the overall pipe-line of planned projects in the state exceed-ed $ 200 billion. Transport along with con-struction were the two largest individual sectors in the pipeline.

The Forum was opened with a speech from HE Jassim Bin Saif Al-Sulaiti, Minister of Transport, in front of a highly-distinguished audience that included HE Sheikh Abdullah Bin Nasser Al Thani, Prime Minister and Minister of Interior; HE Sheikh Ahmed Bin Jassim Al Thani, Minister of Economics and Trade; HE Ali Sherif Al Emadi, Minister of Finance, HE Dr. Hessa Al Jaber, Minister of Telecommunication and Information Tech-nology and HE Abdullah Bin Saleh Al Khu-laifi, Minister of Labour and Social Affairs.

HE Jassim Bin Saif Al-Sulaiti, Minister of Transport speaks to the media on the sidelines of the recent 4th Annual Qatar Transport Forum in Doha.


At every stage in our life we stand at the crossroads and are required to make choices on our next course of action. Making these decisions, some impromptu and others with some

reflection can be vexatious or put is in a dilemma. Prakash ‘PK’ Menon navigates through this quandary and enumerates seven choices that will stand us in good stead.

seVen choices of a high perforMance

enTrepreneUrby prakash ‘pK’ Menon

Highly successful entrepreneurs must have an inherent entrepreneurial spirit or drive. What is important to note here is that entrepreneurship is NOT necessarily about having your own venture. You could have an entrepreneurial spirit even while working in an organisation.

To succeed as an entrepreneur, it’s para-mount that you make the right choices, be-cause that’s pretty much what entrepreneurship is all about. Based on my own experience, giv-en below are some tips that I have followed in my life to thrive and become a successful entre-preneur:

1Managing upwards - A key principle that you have to keep in mind to become a successful entrepreneur in an organisation is to never let your boss down. You should

never be a threat to your boss, but should al-ways try to manage and fulfill set expectations.

2Strategic thinking - Strategic thinking is a key choice for an entrepreneur. You must be able to differentiate between what is important versus what is urgent,

because lack of proper prioritisation, will only lead to chaos.

3Hiring the right people - ‘Long on hire, short on fire’ should be your motto. Your performance is only as good as your team’s, so make sure your objectives are

clear and you have the right people around you to accomplish the goal. If they don’t perform or are unable to fulfill your expectations, don’t hes-itate to replace them with the right people.

p r o f e s s i o n A L p e r s p e c t i V e s

prakash ‘pK’ MenonPrakash ‘PK’ Menon is a respected supply chain expert, internationally acclaimed speaker, thought leader and mentor. He is the executive director of Thought Leaders Middle East and has authored three books: Driven, Fail Smart and Supply Chain is Sexy.

“Consistency is a key aspect for an

entrepreneur. It leads to competency, and

eventually confidence.”

4Measuring what matters - It’s not about measuring anything and everything, but measuring what matters that is important. If you fail to measure some vital parame-

ters that have a direct impact on the business, then what you are doing on the other aspects doesn’t really count.

5Learning to say ‘No’ - As an entrepreneur you should have ruthless priorities and learn to say no. Things that don’t fit in will only be a waste of time and effort.

Getting this bit right will play a vital role for you to succeed in life. You can’t run after everything and must be able to prioritise what has to be done, while letting go of things that may hamper your success.

6Forgiveness vs. permission - It’s vital that you learn to take some risks and chances in life, because the degree of risk is direct-ly proportional with the quantum of re-

ward. Unless you take risks, you cannot progress. As Mark Zuckerberg said: “The biggest risk is not taking any risk... In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.”

7Consistency, Competency, Confidence - Consistency is a key aspect for an entrepre-neur. It leads to competency, and eventual-ly confidence.

The aforesaid seven choices coupled with the hunger to succeed are what will put you on track to become a high performance leader.


Dubai-based logistics solutions provider Verks Global Logistics (VGL) is gradually working its way up the industry pecking order. Offering a vast array of services, VGL has notched up a client portfolio from start-ups to SMEs and multinationals as Tiby Varghese, managing direc-tor, tells Logistics News Middle East.

p r o f i L e

ISO-certified and 3PL and 4PL services provider Verks Global Logistics (VGL) was established in 2010 is based in Jebel

Ali, Dubai, UAE. Verks Global Logistics has had a meteoric growth in the relatively short span of time since its founding. Lever-aging its experience and expertise with high-standard services, VGL offers a raft of sup-ply chain management solutions including international and domestic transportation, warehousing, customs brokerage, freight for-warding and trade consulting services.

Verks Global Logistics: having its work cut out

VGL considers warehousing as its strong-hold and has well-designed logistic centers located within and outside the customs bonded area that easily cater to its custom-er’s logistics requirements locally and inter-nationally, without any hindrance. The facil-ities are divided into racked area (stackable) and bulk storage area (non-stackable).

“Our workforce can provide specialised logistics support for project cargo move-ments and fairs and exhibitions. Our motto is a firm commitment to offer our customers

with comprehensive global logistics solu-tions that cost effectively meet their growing requirements,” explains Tiby Varghese, man-aging director, VGL.

According to Varghese, VGL’s major strength is that it provides personalised sup-port and high quality service at a nominal price for its customers. “We prefer being our customer’s in-house extended wing of logis-tics rather than just a separate 3PL or 4PL entity. This demonstrates our closeness to our customers and the extent to which we

Tiby Varghese, managing director, Verks Global Logistics


p r o f i L e

identify with them,” he indicates. Varghese is forthcoming about his custom-

ers’ belief in quality service which ordinarily comes with a high price tag. He affirms that VGL’s success is attributable to providing personalised and matchless service to his growing clientele. ”VGL delivers high quali-ty service at a competitive price, thereby ena-bling our customers to improve their profita-bility without compromising quality,” he reveals as the secret to his success.

In Varghese’s estimation, the quality and sophistication of services offered is also the result of being strategically located in this GCC region which boats well-developed air-ports and seaports. “It gives us better op-portunities to tap our local and international clients who need to harness our services for transit movements in and out of the UAE and other Middle East markets,” he remarks.

Varghese believes VGL’s capabilities, flex-ibility and ability to provide customised lo-gistics solutions to its clients is the compa-ny’s top USP. “We understand our clients have individual needs in line with their growth requirements. Although it’s a chal-lenge, we enjoy taking up the task to keep the pressure off our customers. Eventually, we strongly believe our customers’ growth is our success,” he elaborates.

VGL has also been in the forefront of de-veloping new schemes to meet clients’ re-quirements. In mid-2014, VGL introduced Trans-border Trucking, otherwise known as TBT, It is a LTL (Less than Truck Load)-FTL (Full Truck Load) service that the com-pany started for Qatar. This further evolved into a value-added service for sensitive ship-ments such as chemicals, batteries and other sensitive compounds and mixtures that re-quire special permit to enter Qatar. This year the company expanded TBT services to Oman and Iraq.

In Varghese’s opinion, the GCC region overall is healthy, economically and politi-cally. The main challenge however is infra-structure development. Different countries in the region have varying paces of develop-ment, procedures, regulations and tariff re-sulting in inconsistencies in speed of trans-portation and deliveries. Another challenges include the high cost of doing business, competition, oversupply, low demand and falling rates—perennial problems that affects profitability and bottom-lines.

Yet another vexatious issue is the dearth of good talent and getting the desirable,

qualified and experienced personnel. “Today finding an appropriate candidate with right skills and talent is very difficult. We can find plenty of candidates available in the market, but unfortunately we still don’t get the right talent. This on the long run affects a compa-ny’s growth and revenues,” he rues.

Varghese stressed that VGL since its in-ception has maintained a nominal year-on-year growth plan irrespective of market con-ditions. This is also in part due to harnessing new technologies and introduc-ing new, cost-efficient and value-added ser-vices in an increasingly aggressive and com-petitive market.

“We strongly believe that with the chal-lenges we face, it only helps if VGL gets more refined and defined, thereby making us stronger and better,” he claims.

Oil price decline is a double-edged sword with advantages and disadvantages. On the positive side is the drop in the transportation costs. This could result in companies taking advantage of low prices to transport higher volumes or even send OOG (out of gauge) cargo by air than by road or rail, where ap-plicable. The negative side though is decline is profitability and revenue and transport companies can face a major crunch in the revenue, due to fluctuating operational costs. “Companies are then under pressure to enhance volume in order to attain profita-bility,” notes Varghese.

Expansion is on the cards and VGL plans to open branch offices in Abu Dhabi and overseas. “However we are moving thought-fully and expansion plans would be based only after careful study of market condi-tions, as ROI on investment is an essential component for survival and growth,” cau-tions Varghese.

“To enable us grow and expand our reach around globe, acquisitions and JVs can play a major role for VGL depending on the opportu-nity available on hand. However, merger is never on cards for VGL,” he signals. He admits that talks are in the pipeline and the company is contemplating forging new alliances and partnerships with peers in other countries and regions. He declines to elaborate but firmly rules out any merger possibilities.

“VGL’s wider vision for the region and globally is to expand organically and through acquisition. This is a great chal-lenge that lies ahead of VGL. Long gone are those wonder years where expansion was easy, business competition was minimum and business opportunities abounded,” he observes.

This has not however dented VGL’s plans to expand and Varghese remains optimistic about growth plans. “We are here to stay and advance for a longtime to come. We will continue to stay the course and progress–so watch this space. Verks Global Logistics is work-in-progress” he adds cheerily.


sicK cLocKs heaLThy growTh in The region

SICK’s extensive range of ‘sensor intelligent’ products and systems are used in airports, ports, warehouses and distribution centres, building security and traffic management ap-

plications. With strong credentials and ever-increasing business opportunities in the logistics automation arena in the Middle East, SICK is foreseeing not only a big spurt in business sales

but also in the company’s market share.

sicK

• 7,000 global employees • Represented in more than 80 countries

worldwide• Present in 15 countries in the Middle

East and in all of the GCC• Current annual turnover of more than 1

billion euros.

L o g i s t i c s A u t o m A t i o n

SICK Automated Identification Postal Sorter


sICK, the eponymous company founded in 1946 by Dr. Erwin Sick in Germany, is a leader in the field of sensor technology. SICK is one of the world’s leading manu-

facturers of sensors, safety systems and automat-ic identification products for factory, industrial and logistics automations applications as well as gas flow and analyzer solutions for process auto-mation. Whether automating factories or opti-mizing distribution centers, or monitoring emis-sions from a stack, SICK provides individualised and customised sensor solutions.

Logistics News Middle East spoke to Alex Kil-ic, regional sales manager, logistics automation, SICK FZE, based in Jebel Ali Free Zone. He be-gan by enumerating the industrial applications for SICK sensors. “SICK sensor intelligent solu-tions find applications in detecting, measuring, positioning, protecting, identification, network-ing, integration, monitoring, controlling and more,” he remarked. “SICK software is used with all our high-end equipment and it is a plat-form that makes it easy for the customer to con-figure and program the equipment, if need be. Our software is always supplied free of charge with products and systems that need software,” he further elaborated.

SICK sensor technology has been used exten-sively across many industry sectors particularly logistics services providers and freight forwarders and is presently used expansively across airports, seaports, cranes, traffic, storage and conveyor, in-dustrial vehicles, courier, express, parcel, cargo, warehousing, building management and building security.

The supply chain and logistics sector is a grow-ing industry and with new, customised and inno-vative products coming from SICK, the company continues to increase its market share in this are-na. “We have always supported the supply chain and logistics industry and SICK is a member of various organisations in this arena. We work very closely with this segment and we are well-regard-ed for our product quality, innovation, abilities and cost-efficacy,” affirmed Kilic.

“We spend about 10% of our turnover on R&D, and this is a considerable sum considering that our turnover is more than €1bn a year. Lis-tening to our customers and responding to their requirements and specifications can be challeng-ing but we do assure substantial return-on-invest-ment for our customers. This constitutes a win-win situation for both us and our clients,” asserted Kilic amplifying SICK’s bespoke and tai-lored solutions that is reshaping and empowering logistics companies in the region.

SICK has also made deep inroads in the re-gion’s aviation sector where the company has a formidable presence. “The Middle East is a very significant market for SICK and one that is grow-

L o g i s t i c s A u t o m A t i o n

ing at a very promising rate. I can comfortably say that all airports in the Middle East have some SICK equipment on site, whether supplied direct-ly or through system integrators,” he reiterated. “UAE, Saudi Arabia and Egypt are firmly in the company’s sights, and opportunities for new ap-plications are coming from countries like Qatar and Kuwait as well,” he further added.

Buoyed by good growth prospects, the compa-ny is expanding into other areas of the Middle East and is investigating ways of opening region-al offices in other countries where we expect busi-ness to grow. Having feet on the ground is impor-tant to grow the business.

SICK is also eyeing opportunities in Iran fol-

lowing the proposed nuclear pact between the five permanent members of the UN Security Council and the European Union and the expect-ed imminent lifting of UN sanctions as a spin-off. “With the prospect of sanctions being lifted from Iran, it is a big market for us, and our vision includes being present in Iran, in many different industries. In a few years, we expect to have SICK officials and personnel in other countries too,” he noted.

With countries almost competing with each other to be in the forefront, the opportunities seem endless. The new airport in Dubai, expan-sions of other airports in the region, increasing number of ports and the required automation all present exciting opportunities according to Kilic. Cheap labour in the region is still a challenge, which makes some companies think twice when it comes to automation, Kilic opined.

Occupational health and safety seem to be em-braced by most companies in the region now, so SICK foresees more and more requirements in that field. This also includes the safety and securi-ty aspect of goods in the logistics industry, and we see more track and trace applications. Kilic is understandably upbeat about the future not only regionally but also internationally as more and more companies warm up and become more ac-cepting of sensor technology.

“We will keep introducing new products in our markets to offer better solutions and better ROI for customers. The future is bright,” he averred before sharing his parting message: “We will continue to support and grow with the indus-try. In that sense SICK is more than just a corpo-rate vision—it is a reality as sensor technology now becomes ubiquitous and commonplace in logistics operations.”

profiLe : aLex KiLic Alex Kilic joined SICK Dubai office in March of this year as the Sales and Marketing Manager of the Logistics Automation Division. He was earlier with SICK Australia for 9 years. With an electrical engineering background, he oversees all the logistics automation requirements in the Middle East region.

SICK Automated Parcel Dimensioning Monitor


PayPerKay, the first-of-its-kind car leasing program offers consumers full control of the cost of their car usage. Dubbed a revolutionary new form of car hire, it offers a pay-as-you-go scheme for lessees.

c A r h i r e

Massar Solutions, exclusive franchisee of Payless Car Rental in the UAE, re-cently announced the launch of ‘Pay-

PerKay‘, a new smart car leasing product that al-lows drivers to pay only for the number of kilometres they use when leasing a car, via a mo-bile application available on both ‘Android’ and ‘IOS’ operating systems, implying it can be used on most major smart phones and devices. Phone users can access their account via a web portal.

“We are delighted to be launching this revolu-tionary new product here in the UAE. The UAE’s car leasing sector has grown significantly in recent years. This makes it even more impor-tant to offer all car users the best available ser-vice and one which gives them proper choice and proper value for money,” remarked Paul Greenwood, CEO, Al Massar Solutions, com-menting on the launch. “We are confident that our innovative PayPerKay will transform the country’s car leasing business and give consum-ers a welcome degree of control and flexibility,” Greenwood added.

Once the agreement has been signed, all sub-scribers have to do is to download the free ‘Pay-

Massar Solutions initiates new car lease model

PerKay’ application and a username and pass-word will be created specifically for their account.

Through the app customers can keep regular track of their kilometres. They can choose from various bundles of kilometres and can top up on-the-go whenever they’re running short of kilometres. Along with this, any un-used kilometres can be rolled over into the next month’s allowance. Subscribers will also be giv-en a free 1,000 kms allowance for each month of the contract.

In reply to a question raised by Logistics News Middle East and in a move that is like-ly to have a substantial impact on the UAE’s commercial transportation business, Green-wood affirmed that the PayPerKay scheme would eventually be extended to cover the lease of commercial vehicles as well. Logis-tics services providers will then be able to lease vehicles on a pay-as-you-go basis but this is a long-term vision and there are no immediate plans to introduce this system in the near future.

Kevin Sheepwash, general manager, Car Rental, Massar Solutions explained: “With PayPerKay, customers only pay for what they use. This contrasts with regular car leasing op-tions where you pay a fixed amount regardless of how many kilometres you drive. It allows the customers to be fully in control of the whole process, from choosing the car’s make, latest model and specifications to the cost of their car usage.”

The application has been successfully tri-alled with 15 customers. With the recent rise in the price of petrol, customers have welcomed this new means of controlling driving costs.

The launch event in Dubai and featured live mobile app demonstration with the un-veiling of a brand new dedicated website for the product.

Right to Left–Paul Greenwood, CEO, Massar Solutions; Qusai Kankazar, Deputy CEO, Massar Solutions; Kevin Sheepwash, general manager – Car Rental, Massar Solutions and Mohamed Kassem, regional fleet sales manager Fiat Chrysler Automobiles - Middle East

Massar soLUTionsMassar Solutions is the market leader in vehicle rental, fleet and supply chain solutions in the UAE. With over 15 years of success track record, the company offers innovative and efficient mobility solutions to government, semi-government and private sector clients operating in the UAE’s industrial and commercial sectors.

The Fleet Solutions division provides tailored fleet management solutions that focus on the containment of costs and risks associated with owning and operating a fleet. The Vehicle Rental division is the licensed operator of the Payless Car Rental Brand for the UAE territory. The Supply Chains division works with clients to create scalable, flexible and adaptable supply chain solutions that can respond quickly to the changing demands of the marketplace.

Massar currently owns and operates a fleet of 9,755 vehicles and manages a further 6,755 vehicles for third party clients. The company serves over 500 clients across a variety of sectors. It is the sole distributor for Arvento Mobile Tracking and Telematics products in the UAE.


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TsMe gains TracTion in rUn-Up To 2016 TransporT

debUT showPreparations are in high gear as Comexposium Middle East makes inroads into organising

the inaugural edition of Transport Solutions Middle East 2016 in Dubai

Fadi Saad, managing director, Comexposium

Transport Solutions Middle East (TSME) 2016 will debut at the Dubai Interna-tional Convention and Exhibition Cen-tre from 14 to 16 March. Organiser

Comexposium Middle East has billed it as a dedicated event for commercial vehicles, trail-ers, vehicle body builders, auto parts, accesso-ries, batteries, tyres and handling. The event will give industry experts an opportunity to ex-plore new innovations in the road transport ve-hicles sector.

Logistics News Middle East met exclusively with Fadi Saad, managing director, Comexposi-

um, to get the low down on what he character-ises as the only international exhibition in the Middle East covering the entire supply chain of the wider region’s transport industry and show-casing the world’s leading manufacturers and service providers. TSME aims to become the premier platform for the regional industry to witness exhibits across the entire supply chain of road haulage and urban transport.

Transport Solutions ME 2016 will be staged in Dubai in March 2016. Make the case for why Comexposium chose to stage the exhibi-tion in the first place.


Comexposium Middle East has definitely recognised the gap in the market for com-mercial transport and road haulage. After speaking to stakeholders in the market, Comexposium Middle East capitalised on its knowledge of the industry from its existing lead-ing event Solutrans in Lyon, France to launch Transport Solutions Middle East. Solutrans is an industry premier event focusing on innova-tion in urban transportation and road haulage.

who is being targeted for Transport solutions Me 2016 and what has been the response so far? Transport Solutions Middle East is looking to attract top names from across the world vehicle and body equipment manufacturers, manufac-turers of industrial vehicles and vehicles for pas-senger transportation, semi-trailer and trailer manufacturers, industrial vehicle body-builders, light commercial vehicle manufacturers and body-builders, manufacturers of workshop equipment products and consumables, accesso-ries manufacturers and battery and tyre manu-facturers.

The response so far has been great with many regional names committing to exhibit at the event. Additionally our international partners have shown exceptional interest in bringing to-gether industry players from their respective markets.

what is the visitor turnout you are expecting and describe the profile of the average visitor for Transport solutions Me 2016? For the inaugural edition, we are expecting over 5,000 professionals to attend the event. These visitors will represent transport companies, au-thorities, dealers and distributors, fleet manag-ers, end user buyers, heavy vehicle and light commercial vehicle body builders among many others from the industry.

why was dubai chosen to host Transport solu-tions Me 2016?Dubai is strategically located at the crossroads of Asia, Europe and Africa and is the main business and trade hub for the entire Middle East region and beyond. Its first class logistics facilities, tourist amenities and liberal policies make it one of the world’s most successful and vibrant cities.

what do you hope to accomplish at Transport so-lutions Me 2016?We hope that Transport Solutions Middle East will provide the missing platform for the urban transport and road haulage industry to connect and share their knowledge. With the associated

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“Infrastructure, commerce and trade has been developing at a fast pace in the Middle East.

This is opening opportunities for truck manufacturers, these

manufacturers are moving into emerging

markets in the Middle East.”

events part of Transport Solutions Middle East including innovation awards, conference and demonstration area, the industry is certainly go-ing to gain the required knowledge to increase the pace of growth.

what is your assessment of the current state of the transportation industry in the region? is the infrastructure adequate for containing the influx of new vehicles forecast at 5.2 % annually be-tween 2015 and 2017?Infrastructure, commerce and trade has been de-veloping at a fast pace in the Middle East. This is opening opportunities for truck manufactur-ers, these manufacturers are moving into emerg-ing markets such as Brazil and Middle East. Countries in the Middle East region have diver-sified quite significantly in the recent years to ensure that infrastructure development remains high on their agenda. Also, events like Expo 2020 in Dubai and World Cup 2022 in Qatar will necessitate this even further.

do you foresee the Middle east to become a cen-tre for manufacturing and assembly for commer-cial Vehicles? why?The Middle East is already a hub for manufac-turing and assembling of commercial vehicles. In the Gulf region, automobile firms such as Renault Trucks are emerging into the Middle Eastern market. Renault Trucks is setting up in Iraq for manufacturing and assembling their ve-hicles and will be functional in Q1 of 2016. The Middle East consumption of these vehicles has been on the rise and provides the Middle East-ern countries with future growth opportunities in this market. Similarly, Mercedes Benz is look-ing to enter Iran again among other car makers such as Peugeot and Volkswagen.

Saudi Arabia is already home to manufactur-ing plants of Mercedes-Benz, Volvo and MAN.


The United Arab Emirates on the other hand has manufacturing plants for SCANIA and Ashok Leyland.

how important is use of Telematics in today’s con-text for the transport industry?New innovations like telematics ensure that companies have their products delivered accord-ing to the required temperature ranges while making sure it is safer, efficient and sustainable. The use of telematics has been gaining populari-ty in the GCC region as it has contributed to-wards minimised cargo damage.

Events like Innovation Awards and Confer-ence at Transport Solutions Middle East will certainly touch upon these topics and ensure that industry knowledge grows in the right direction.

what needs to be done to further improve the lev-el of road safety in the gcc?Road safety measures have been on the rise in the UAE, Abu Dhabi implemented a tyre safety campaign earlier in August to increase road safety and reduce road accidents. Dubai Police has also made efforts to educate students on road safety to increase awareness. HH Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai has also implemented new laws as well to ensure traffic safety and reduce accidents.

how is the apparent anomaly-the rise of petrol prices but the decline of diesel prices impacting the transportation industry in the Uae?It is a fairly recent anomaly to have a clear un-derstanding of the impact. Having said that, re-

duced diesel prices are hopefully going to lead to the overall growth of the industry.

how will the onset of the proposed pan-gcc rail network affect the road transportation industry?

While the pan-GCC is an excellent infrastruc-ture development, the road transport industry will always have its own space when it comes to logistics, whether short or long haul. All of the GCC already have ongoing projects and plans for road and transportation development.

Saudi Arabia, UAE, Oman and Qatar have been investing heavily on road transportation. According to industry reports, the GCC will cu-mulatively be investing around $ 121 billion on land and infrastructure.

There is also the perennial bottleneck of traffic at the Uae-saudi arabia border at the al ghuweifat checkpoint. will that issue come under the radar at the exhibition?Issues like road safety and road blockages will certainly be discussed heavily during the Trans-port Solutions Conference. The Transport Solu-tions Conference will be an interactive summit addressing the changes and challenges in urban transport road haulage along with the latest re-gional regulations that are impacting the indus-try.

are you planning to hold seminars, workshops and panel discussions for the duration of Transport so-lutions Me 2016?The outdoor demonstration area will allow ex-hibitors to deliver live demonstrations of vehicles to visitors and the Transport Solutions Innova-tions Awards will recognise the most innovative products, projects and visionaries

are there plans to increase the frequency to make this exhibition say bi-annual (twice yearly) and to add other editions across the gcc?At this point we are launching the first edition of Transport Solutions ME so there are no immedi-ate plans for additional events right way.

what is your vision for Transport solutions Me 2016 and what is your message to the trade on this occasion?Transport Solutions will provide professionals in the commercial vehicles and road sector the op-portunity to meet buyers, suppliers and distribu-tors. It will be a perfect meeting place providing visitors and buyers with unique features before making a purchase such as the ability to test vehi-cles and view the actual vehicles and accessories in the outdoor demonstration area. We hope to be the leading event in the urban transport and road haulage sector that meets with the industry requirements adequately.

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A rarity in the logistics industry, Rouba El Akhdar is uniquely positioned as finance director-Middle East, Hellmann Worldwide Logistics, one of the very few women in an apex financial position with a logistics company. Reflecting on eight years with the firm, here she talk about workforce diversification and business philosophy

caLLing The financiaL shoTs

briefly, what does your job entail?My current job entails overseeing Hellmann Worldwide Logistics Middle East’s entire finance structure within the region and supporting the strategic growth of the organisation from a financial standpoint.

what attributes describe you best? The characteristics that best describe me are the values I cherish the most. These are integrity, transparency, commercial thinking and sociability. The first three are vital in the finance profession where honesty is key. People on this profession also tend to be analytical and thrifty—so working in the best commercial interests of the company is very important. Additionally, I am also a people’s person—I am very people oriented.

what are the must-have characteristics you look for in employees?Going the extra mile on the professional front and being cooperative, being ambitious yet

capable, being truthful and the ability to fit in and acquiesce in a multi-cultural mix is what I look for in my team.

what drives and motivates you on a day-to-day basis?I like to believe our organisation represents the vibrancy and the dynamism of Dubai in general and I can assure you there is not even a single day that I don’t learn something new. It is all part of a grand process of learning anew each day and I am proud to assert that at Hellmann, we do have a great workplace.

what do you like most about your job?I enjoy my work for the passion and involvement it brings out in me. I also enjoy the many opportunities and challenges my job brings and the exposure I get to the various aspects of the business. Learning and appreciating the cultural diversity of and through the people I deal with, from colleagues, to customer and suppliers is also another perquisite of my job.

what interests do you have outside of the business sphere?My work takes a lot of time of my daily life and I make it a point to find the right balance to spend time with my husband and kids. To unwind I do yoga and enjoy cooking, listening to music and reading.

what motivated you to go into the logstics and supply chain industry and what would you have aspired to be if things were different? Hellmann is a global organisation that is growing and one that believes in a culture of meritocracy. I was attracted by Hellmann’s corporate profile of Hellmann and the industry. I can assure the feminine community the logistics industry is not intimidating.

I have always been attracted to the creative side of business and the fashion industry has always been of interest to me. In my current position, I am looking forward to supporting the new fashion vertical initiative Hellmann is rolling out in the Middle East.

professionally, you are planted in a business where women are largely under-represented. give us your take on the existing male-female ratio among logistics professionals?It is indeed a male dominated industry probably in the ‘C’ suite but increasingly more and more female candidates and professionals are gravitating towards the supply chain industry as the profile of the industry gains more charm and credibility in the region.

Now there are local and international universities in the UAE that offer Master’s Degrees in supply chain and logistics faculties and the quality of trained, qualified and experienced graduates coming out of these institutions is of higher calibre.

how well-reconciled are you in your position with hellmann worldwide Logistics working in a largely male-dominated professional environment? Hellmann in general has a good gender balance and is an equal-opportunity employer. I have never, in any way, felt I am any different in the management team. My gender has never been an issue and I am proud and delighted that I am work for Hellmann where performance and capabilities count and no one is discriminated on basis of gender, race or nationality.

in your opinion, what can the industry do attract more women to the ranks?The logistics industry is gradually coming out of its traditional low profile perception among the youth and beckons young qualified and capable professionals. As the industry becomes increasingly global and complex, new skill sets are required. I believe it is no more a male preserve or male-centric. Hellmann per se is not


targeting female personnel but more and more from women are applying for positions at our company.

I think it is the culture within the organisation that empowers people and I believe we should not generalise. Most industries today are gender-neutral and professionals should seek opportunities as they come along.

I don’t see any limitations for women to pursue a career in the logistics industry as in any other industry. I foresee more and more women will come into the workforce in this industry in the future and, given, the tight and competitive employment scenario and large number of expatriates coming and hunting for jobs, particularly in the GCC, there is inevitably bound to be more and more interest in the industry from women.

what advice would you give young people and specifically women and Uae nationals wanting to make a career in logistics?Logistics is a major contributor to the UAE’s GDP. I am of the opinion that the strategic geographical position of Dubai and the continued investments by Dubai government into the logistics infrastructure, such as ports and airports, make this profession a sustainable one for the young aspiring talents whether locally or internationally. I exhort young people and specifically women and UAE citizens to seize opportunities as they come along.

describe your business philosophy in two sentencesMy business philosophy can be

summarised as follows: meet the expectations of both the employer and employees, customers and at a wider level to meet corporate social responsibilities.

if there are two causes you would espouse, what might these be?The causes closest to my heart are ‘women’s empowerment’ and to help, in my own small way, deprived humanity.

what would you regard indispensable?Faith and values in life are important for me and I espouse these.

what do you regard as the key to your success?I believe the key to my success is being genuine and being myself—an individual with specific characteristics.

how do you attain a work-life equilibrium given your commitments both professionally and to your household?There can never be a perfect equilibrium and one has to learn to prioritise on a daily basis.

how do you relax after the working day?I unwind by spending quality time with my family.

what do you like most about working in the Uae?Safety, stability, multi-cultural environment, the opportunities in my professional growth and not being very far away from home are some of the attractions for me working in the UAE.

s o f t t A L k

profiLe: roUba eL aKhdar

Rouba El Akhdar is currently regional finance director at Hellmann World-wide Logistics Middle East based in Dubai, UAE. She joined the company in October 2007 as GM of finance and was prompted to her current position in January 2013.

Rouba is responsible for the financial reporting of all legal entities including the holding company registered in the Isle of Man. Additional responsibilities include preparation of yearly budgets and monthly forecasts for Hellmann and the JVs (Rudolph Hellmann Automotive and Hellmann Calipar Health Care Logistics); managing the treasury of Hellmann and JVs and supervising the financial audit for UAE and Kuwait.

Rouba El Akhdar acquired a Bachelor of Science degree in banking and finance from the prestigious American University of Beirut (AUB) in Lebanon. Her expertise and skills are in the areas of cash flow, financial management, financial account-ing, logistics and supply chain.

Her past experience includes tenures with such blue chip companies as Schlumberger; Starcom Media Vest Group and Tetra Pak.


Etihad Rail has transported more than two million tonnes of Sulphur from Shah and Habshan to the port of Ruwais in the Western Al Gharbia region in the past 12 months

e t i h A d r A i L

In a major feat, Etihad Rail, the developer and operator of the UAE’s national railway, has announced that over 2 million tonnes of sul-

phur have been transported from production cen-tres in the Western Abu Dhabi emirate to the port of Ruwais in the Arabian Gulf for onward export.

Since the completion of the 264km route last year, trials are now running on a daily basis, con-ducted by Etihad Rail’s operating partner, ERDB, a joint venture with DB Schenker of Ger-many. Full commercial operations are expected to start shortly once Etihad Rail is granted its reg-ulatory approvals, meaning the volume of sul-phur transported by rail will increase significantly in 2016 and beyond.

The recent announcement offers an insight into the significant economic and environmental benefits that the federal railway network will bring to the UAE, with Etihad Rail’s trains hav-ing already replaced more than 66,000 truck trips from the roads in the western region of Abu Dhabi in the past 12 months.

Commenting on the news, Faris Saif Al Maz-rouei, CEO of Etihad Rail, stated: “Transporting more than 2 million tonnes of sulphur in the past year during our testing and commissioning and trial operations phases is a very proud achieve-ment for us and it clearly demonstrates Etihad Rail’s unique value proposition as a reliable, safe

Etihad Rail on track with 2m tonnes of sulphur transportation

and environmentally friendly mode of transport. Presently, the Etihad Rail fleet comprises sev-

en locomotives and 240 hopper wagons and op-erates to transport granulated sulphur from two plants in Shah and Habshan in the Western re-

gion of Abu Dhabi to the sulphur handling ter-minal at Ruwais Port.

The Etihad Rail project is being delivered in three key stages of development. It will be used to transport bulk and non-bulk materials, offering tailor-made solutions to differing customer needs. Network routes have been designed to accommo-date all key customer sectors, with freight facili-ties positioned to connect production hubs with points of import and export.

Upon completion, the network will span ap-proximately 1,200 kilometres across the UAE, connecting urban and peripheral communities, facilitating trade, opening up communication channels and fostering economic development. Etihad Rail will also form a vital part of the GCC Railway Network, linking the UAE to Sau-di Arabia through Ghweifat in the west and Oman through Al Ain in the east.

MoU: In related news, Etihad Rail also recently signed a Memorandum of Understanding (MoU) with Transworld Logistics, a multi-faceted shipping and logistics company.

The agreement will provide Transworld Logis-tics – part of the UAE-based global conglomerate Transworld Group - with a new and economical mode of transport and help deliver a reliable, high volume service across rail and shipping net-works.

The MoU was signed by Faris Saif Al Maz-rouei and Mannan Balasubramanian, general manager of Transworld Logistics.

“This agreement cements an important rela-tionship between our two companies,” said Faris Saif Al Mazrouei, commenting on the pact. He noted that in addition to their ware-housing and logistics offerings, the Transworld Group also represents other organisations alongside Transworld Logistics – these are in-cluding Orient Express Shipping Lines and Balaji Shipping Lines.

Established in 1976, Transworld Group is one of the leading international providers of multi-modal integrated logistics services in the Middle East, Indian Sub-Continent and South East Asia. The Transworld Group has three ship owning companies, based in India, UAE and Singapore.

Etihad Rail locomotives transport freight cars laden with sulphur from Shah and Habshan to Ruwais Port across Abu Dhabi’s Western (Gharbia) region.

“This major accomplishment demonstrates Etihad Rail’s

unique value proposition as a reliable, safe and

environmentally friendly mode of transport”

Faris Saif Al Mazrouei, CEO, Etihad Rail

Come and visit us at ADIPEC 2015 - Stand 9230, Hall #9The Abu Dhabi International Petroleum Exhibition & ConferenceAbu Dhabi National Exhibition Centre (ADNEC), Abu Dhabi, UAE.

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Documents

Logistics News ME - October 2015